The Bitcoin market continues to be a bit surprising, as Bitcoin is starting to show signs of waking up again.
Bitcoin
The Bitcoin market has been fairly noisy during the trading session on Tuesday as it looks like we are trying to do everything we can to break out to the upside. I think this is a situation where traders will continue to pay close attention to risk appetite and of course whether or not the markets will continue to run towards Bitcoin despite the fact that there are a lot of concerns around the world when it comes to risk appetite.
The market is above the 50-day EMA, and this is a very good sign. If we were to turn around and break to the upside, perhaps clearing the $76,000 level, then it opens up a move to the $84,000 level.
Potential Floor and Upside Targets
The $72,000 level underneath is an area that I think a lot of people are going to be looking for a potential floor. If we were to break down below there, then I think you have to reset for a moment.
With this, I think the odds are that the market is in the midst of breaking out to the upside. It is worth noting that as we get into the later part of the session, it looks like buyers are returning on Tuesday. I think we've got a situation where eventually we find a way to get to the upside, perhaps trying to break out to the $84,000 level.
If we do break down, then I'll be watching a couple of different areas, not the least of which would be the $65,000 level. This looks a lot like a rounded bottom for me, and this is a situation where we could start to see the beginning of something rather impressive considering that the world is on fire and Bitcoin is doing fairly well. Bitcoin fell apart before the war, so with this, maybe some value hunting is starting.