The resilience in Bitcoin has been something I have been watching for a while, and I have to admit – it looks like the market simply doesn’t want to fall apart.
BTC/USD
Bitcoin rallies a bit during the early part of Monday, despite the fact that the US dollar has been rising. The resilience in the Bitcoin market is something worth watching and quite frankly, this for me has been a matter of what Bitcoin will not do, not necessarily what people think it will do.
After all, during the entirety of the war in Iran, Bitcoin has made an argument that it wants to go higher or at the very least, doesn't want to go lower. That's a very bullish sign considering that risk appetite will have been completely destroyed at one point.
Institutional Flows and Technical Support
But in this environment, we continue to see people buy Bitcoin. In fact, it's probably worth noting that the institutional flows back into ETFs has been picking up and this suggests that bigger money players are in fact trying to pick up a little bit of value.
The 72,000 level could be a short-term support level as it was previous resistance, but now we have the 50-day EMA sitting there as well, so that also adds a little bit of potential support. Breaking down below there opens up an even deeper correction, but at this point, I suspect that if Bitcoin hasn't collapsed already, it probably isn't going to.
That doesn't mean that you jump in with a huge position, just that we are in the midst of watching this thing turn around and we could see a nice run from here given enough time. Choppy conditions will continue to be the mainstay of most markets, and I can't imagine this one being any different, but just the pure resiliency of the Bitcoin markets has been very interesting to watch.