Bitcoin continues to see buyers are the moment, as we are looking at the market through the prism of a potential turnaround.
BTC/USD
Recently we’ve seen Bitcoin shift its price action to show significant bullish pressure, at least in short-term movement, in the early part of the year in an attempt to either recover or at the very least consolidate. It's very interesting because Bitcoin is currently behaving as if it's a geopolitical hedge rather than a risk asset, which is a little bit different than it has acted in the past, at least most of the time. It explains the resilience despite traditional market stresses.
Furthermore, it's probably worth noting that Bitcoin had already sold off quite drastically before all of the war started to break out in the Middle East. So, with that being said, it is definitely a market that has been beaten down enough to at least make it look attractive to those who are longer-term holders or people who are longer-term believers.
Geopolitical Resilience and Scarcity Milestones
The safe haven pivot, while the global stock markets are being rattled by conflicts in the Middle East, has been very interesting to watch. There is a little bit of a scarcity milestone to talk about as Bitcoin had minted its 20 millionth coin this week. With 95.24% of the total supply now in circulation, the scarcity narrative is still front and center.
Interestingly to me is that while price has started to rise, the Fear and Greed Index is at a low of 15, which means extreme fear. Quite often, this disbelief can occur right before the start of a sustainable rally.
That being said, Bitcoin does need to clear the high of $74,000 to really get FOMO going again. It's obvious that there are a lot of things going on around the world that could spook investors. To the downside, the $64,000 level looks to be a bit of a floor and most certainly the $60,000 level will behave like that as well. It looks like we're trying to turn things around, and for those that truly believe, buying the dips should be an attractive trade in this environment.