Bitcoin continues to see a bit of stability, despite the world being on fire. This isn’t what you would expect, so its important to pay attention to it.
Bitcoin
Bitcoin continues to be very noisy, but it looks rather resilient in comparison to everything that is going on at the moment. After all, this is a market that I think sees a lot of headwinds out there when it comes to geopolitical and interest rate headlines and the market will continue to see a lot of questions asked about the 50-day EMA if we jump to the upside where it is at the 72,000 level.
I think ultimately this is a pair, Bitcoin against the US dollar market, that we could see an explosive move to the upside if we get more risk appetite, perhaps more so than when it is denominated in other currencies. The 50-day EMA being broken to the upside could open up the possibility of a move to the 76,000 dollars level. Short-term pullbacks at this point continue to be bought into and I think that is something to pay close attention to.
Potential Floor?
I do believe that if this market were to fall apart from here, the 60,000 dollars level must be defended because if it is not defended, then markets are likely to really come undone. All things being equal though, considering everything that is going on, it is interesting that Bitcoin has been relatively stable.
In this environment I think you have to be somewhat bullish or at least optimistic. Whether or not optimism continues we will have to wait and see, but at this juncture I would say I would probably venture to say that it does make sense that eventually we have a rally. Institutional ETFs are starting to see more inflows, and I think that continues to be the main story here.