Bitcoin has been horrific lately, as the markets continue to see a lot of selling pressure overall. Bitcoin is still looking for some kind of reason to move in a positive light, other than being oversold.
Bitcoin
The Bitcoin market has fallen to test the $60,000 level during early Friday and quite frankly bounced quite nicely, about $8,000 by the time the Americans came onboard. While that's a very positive sign, we have a long way to go before I would call this a turnaround.
We would have to at the very least wipe out the candlestick from the previous session on Thursday to even have that conversation. Quite frankly, the volume did pick up; this might have been capitulation. But when we looked at the longer-term charts, we did test an area you would hope would hold.
Technical Hurdles and Identity Concerns
Bitcoin has been in an absolute miserable place to live recently, and I think that the best-case scenario is that we get a bit of sideways action and then maybe a gradual grind higher. Bitcoin has a major identity crisis going on right now because quite frankly all of the basic questions that most people who are not evangelists have been asking for years are finally coming to the forefront.
For example, what real use does it have? Blockchain, yes, we all understand that, but Bitcoin itself hasn't been adopted and that is going to continue to be a major problem.
If we can take out the Thursday candlestick getting to roughly $74,000, then we could go looking to the $84,000 level where I'd expect to see a lot of resistance. Quite frankly, I think this is still a situation where you are probably fading signs of exhaustion after short-term rallies at least until something changes. Right now there's just no good news out there other than we didn't break down below $60,000.
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