Bitcoin rallied on Monday again, despite the fact that there are massive issues in the financial markets at the moment, something that tells me there is real interest in Bitcoin at the moment.
BTCUSD
Bitcoin rallied a bit during the Monday session as the markets continue to see a little bit of resiliency in the crypto region, especially with Bitcoin. Since the beginning of February, we have seen a lot of stabilization, which is a bit surprising considering just how volatile the geopolitical situation has been and, of course, the problems that we had with rates jumping.
With that being said, I think you have to look at this as a market that is now going to be testing the 50-day EMA and then the $72,000 level. If the market can break above there, then you have the $76,000 level as a potential target. Short-term pullbacks, I think continue to be something that you look at as a potential buying opportunity in a market that, quite frankly, just won't fall apart.
A Potential Floor at $65,000
I can give you 100 reasons why they should be massively selling this market off, but the reality is that traders simply just aren't selling off. So, with this being the case, I believe this is a scenario where we are building up for a longer-term move, but that means you will have to be very patient.
The $65,000 level is an area that we need to look at as a potential floor. If we were to break down below there, then we could see the $60,000 level tested yet again. The $60,000 level is your line in the sand, and a breakdown below there really tears the Bitcoin market apart. Volume is stable, and the market is forming something along the lines of a bottoming pattern, so this is a market I would not sleep on.