Sometimes, it isn’t what a market is doing that is interesting, sometimes it is what it won’t do.
Bitcoin
Bitcoin continues to be very noisy as we see a lot of questions asked about whether or not we can turn things around and start taking off to the upside. We are in the midst right now, at least in my opinion, of trying to figure out which direction we are going to go longer term.
It’s worth noting that we have seen a lot of noise out there as far as risk appetite is concerned and that makes quite a bit of sense considering that we have been going sideways for a while. It’s worth noting that despite the fact that there’s absolute chaos out there, the Bitcoin market remains somewhat stable.
Forming a Bottom and Potential Breakout
I think we are still in the midst of trying to form some type of bottom. The 60,000 level of course is an area that I think a lot of people will be watching as it had been important previously and of course it is a large round psychologically significant figure.
If we turn around and break above the 50-day EMA, then it opens up the possibility of a move to the $84,000 level. Ultimately, I do think we break out to the upside because quite frankly Bitcoin just won’t fall apart here and that is something that you need to pay attention to. Sometimes it’s important to pay attention to what a market won’t do instead of what you think it will do.
Right now, it just won’t fall apart and therefore I think Bitcoin is in the midst of trying to find its footing and perhaps rally, but in this environment, it could take quite a bit of time and quite a bit of effort to make things happen and get Bitcoin rallying. I’d be a buyer above the 50-day EMA.