Bitcoin is essentially in a bottoming pattern at the moment, as we are trying to turn things around. This is a market that has been following rates closely.
BITCOIN
Bitcoin is very choppy and noisy during the trading session on Friday, which makes a certain amount of sense considering that it was Good Friday and most of the institutional traders were not involved. With that being said, the market is hanging around the $67,000 level. This is an area that I think will continue to be important and if we were to break down below here, then we probably test the $64,000 level. Anything below there opens up the possibility of a drop to the $60,000 level.
To the upside, the $70,000 level will be interesting as it is the 50-day EMA and a large psychologically significant figure, but for some time the real barrier has been $72,000. If we can break above that then we can make an attempt to go much higher.
Basing Patterns and Institutional Accumulation
I think Bitcoin is essentially in a bottoming pattern right now and if you are patient enough you may be able to take advantage of what could end up being a bigger turnaround. The $60,000 level being broken to the downside of course would be a very negative turn of events and it is worth noting that recently Bitcoin has done fairly well in the sense that it has been stable while the world has been on fire.
Granted, Bitcoin sold off pretty drastically before, so I do think that is something to keep in the back of your mind, but I look at this as a market that is buy on the dips. There is accumulation going on out there, especially in the institutional ETFs. So, we are building that base; it is just a matter of how long you can wait.