Bitcoin continues to see a lot of noise, as traders are trying to turn things around, after what had been a massive selloff.
Bitcoin
Bitcoin has rallied quite nicely during the trading session on Tuesday in a bit of a surprise move as we are starting to see Bitcoin used more like a safety asset these days or perhaps just ignoring the fact that most of the world is in a frenzy.
With that being said, I'm watching the 50-day EMA very closely and if we can break above it, it could open up the possibility of a move all the way to the $84,000 level. Bitcoin has been very resilient as of late and therefore I think that short-term pullbacks will continue to be a buying opportunity as long as we can stay above the $64,000 level. This is a short-term support level that I think a lot of people will be watching. It has been important to defend that recently, and as a result it is that we could look at that as an entry on pullbacks.
Resilience Amid Volatility
If we were to break down below there and crash through the $60,000 level, then the market probably falls apart. It is interesting that we are in the midst of trying to find a longer-term bottom and ultimately, it's been impressive.
The volume buying is obviously starting to pick up, and the volume selling is starting to drop on the daily charts and therefore I think you are starting to see a situation where there are real serious attempts to buy this. It's very noisy and it has been somewhat sideways for 6 weeks, which means it could catch people by surprise. While we don't have a clear signal to start buying yet, this is a market you need to pay close attention to because quite frankly, it's performing much better than many other assets in an environment that it really shouldn't be performing in at all.
Potential signal: I am a buyer of BTC above $72,000 with a stop loss at the $68,000 level. I would target $83,000 above.