Bitcoin continues to see a bit of upward pressure, as we are trying to turn the entire market around.
Bitcoin
Bitcoin has rallied a bit during the session here on Monday to show signs of life yet again. Ultimately, this is a market that I think is in the middle of turning things around.
We are breaking above the 50-day EMA and if you’ve been watching me here at Daily Forex, you know that I’ve been talking about this $72,000 region as being important. Now that we are above there, if we can sustain above this area, eventually I think Bitcoin will go higher.
I think we are in the midst of trying to turn this whole thing around. It’s kind of interesting considering that the whole world has fallen apart, but at the same time, you can also say that Bitcoin fell apart first. Now, people are looking for some way to store money and maybe put some away.
Institutional Interest and the Buy on the Dip Strategy
We just recently passed the psychologically important 20 million Bitcoin mark, meaning that there’s only 1 million coins out there to be printed. But all things being equal, I think this is a huge washout that some institutional traders are starting to take advantage of.
We don’t really have a lot of momentum, and I wouldn’t expect that, at least not right away, but this looks more and more to me like a buy on the dip market with a limited part of your portfolio. I would not go into this too heavily. I recognize that we could turn right back around and fall apart.
After all, we had what looked like a bottoming pattern at the end of last year that started to rise, it broke above resistance and then collapsed, so you have to be very careful. But this is a market that everybody hates and a lot of times, that’s when Bitcoin suddenly takes off and starts building more and more momentum and then eventually getting more people in on the FOMO side.
Potential signal: I am a buyer of BTC at $74,500 with a stop at $72,250. I’d be aiming for $84,000.