The $60,000 level in Bitcoin is crucial. At this point, it looks like it will hold.
Bitcoin
On a day that has seen so many reasons for the markets to drop in general when it comes to risk appetite, it’s a bit surprising that I’m seeing the Bitcoin market jump. However, I think this is something worth paying attention to because we also have seen the Nasdaq 100 rally, and that does tend to have somewhat of a correlation to Bitcoin at times, although Bitcoin is in its own world at the moment. As it sold off so drastically, it makes a certain amount of sense that maybe we will have to see whether or not it can stabilize.
The $60,000 level underneath is a significant support level and a large round psychologically significant figure that a lot of people would be paying close attention to. If we were to break down below the $60,000 level, then the market could go looking to the $50,000 level, but I have to admit, I am a bit taken back by the fact that Bitcoin is so resilient. Maybe we are finally starting to see an attempt at forming a serious bottom. When you zoom out on longer-term charts, this is most certainly an area that should attract a certain amount of attention.
Technical Projections and Institutional Behavior
The next level I’m watching is the $72,000 level, and if we can break above there, then the market is likely to go even higher, perhaps testing the 50-day EMA and then the $84,000 level. Ultimately, this is a market that I think continues to be very noisy, and if you are a longer-term believer, you probably already starting to buy the dip.
That being said, it’s an institutional asset now as well and institutions typically don’t jump into a market rapidly that’s been selling off; they tend to take little bits and pieces and build up a position. That could be what’s happening here. I would watch the $72,000 level for clues; if we can break above there, that would be a truly positive sign.