Bitcoin has pulled back slightly on Thursday, as traders are trying to build enough momentum to continue the big move from the Wednesday session.
Ultimately, we are trying to determine if there is a real breakout.
Bitcoin has pulled back just a touch in the early hours here on Thursday as the 50-day EMA continues to offer a little bit of resistance. The 50-day EMA offered resistance on Wednesday, so a little bit of a pullback from there could be a potential opportunity and I do think that short-term pullbacks will probably attract attention because we are in the midst of forming a little bit of a rounding bottom with the volume following right along how you want to see it.
Potential for Upside and Key Support Levels
If we can take out the 50-day EMA to the upside, I think that will bring in more FOMO and we will go looking to the $84,000 level. The $60,000 level looks to be a massive floor in the market and in fact extends all the way up to the $64,000 level. So, while I can give you 100 reasons not to buy Bitcoin, I have to admit it is starting to look a little bit interesting here. This is especially true considering how risk-off the entire world is right now, yet money is flowing in the opposite direction. That’s not just a Bitcoin thing; you’re seeing that in other places as well, as risk appetite has been surprisingly resilient in general.
So maybe we’ve got the beginning of something here. I wouldn’t jump in with both feet, and a small position size most certainly would be the prudent thing to do here but Bitcoin may be in the process of finally finding its bottom after a complete collapse over the last several months.
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