Bitcoin continues to be quiet and somewhat lost at the moment, as traders will need to see it stabilize for any real shot at higher levels.
BTC/USD
Bitcoin continues to be a very sad state of affairs as the market is treading water right around the 68,000 level in early New York trading. Quite frankly, I think Bitcoin is worth watching, mainly because it is a bit of a barometer on the entire digital asset space.
I think we've got a situation here where traders are just wondering what is it used for? After all, we've been sold this bill of goods how Bitcoin was going to change the world, but the one thing that most traders and people forgot to talk about was whether or not it's being used.
Of course, you can go online and hear all of these use case scenarios and how great it’s to use to transport money out of oppressive regimes or international transfers, but the reality is it's such a niche use case scenario at the moment.
Institutions, I think, just jumped in on Wall Street to sell the ETF to their clients and make a ton of money. The financial institutional adoption of Bitcoin has been an unmitigated disaster so far. It certainly goes against everything that Bitcoin was supposed to be.
A Major Resistance Barrier
Through that prism I look at the chart. It's obvious that the 72,000 level is a major resistance barrier and it just doesn't look like we're going to break above there.
The correlation between the Nasdaq 100 and Bitcoin was fairly strong for quite some time, but the Nasdaq 100 has really taken off during the day while Bitcoin is just kind of hanging around.
There has been a significant amount of damage done here and I think the best thing for Bitcoin is to spend several months grinding around this area, but most importantly staying above the 60,000 level. If we break down below there, we probably are looking at 50,000.
Top Regulated Brokers
Ready to trade Bitcoin forex forecast? Here’s a list of some of the best crypto brokers to check out.