The Bitcoin market will continue to be one that I watch closely, as we have seen it show signs of stability, when most other things are not able to.
BTC/USD
The Bitcoin market continues to be very noisy during the trading session on Tuesday as traders have struggled to really push the market to the upside, but I would point out that Bitcoin has held up quite well considering that the world is essentially on fire. If that is going to remain the case, then I think you have to be very cautious, recognizing that the market is in the midst of perhaps trying to form some type of larger bottoming pattern.
With this being the case, I believe that the market is watching the 50-day EMA very closely, and that is sitting just above the crucial $70,300 level. If we can break above that level, then we have a very real possibility of trying to reach the $72,000 level.
Market Sentiment and Geopolitical Tensions
Anything above the $72,000 level opens up the possibility of a much bigger move, perhaps towards the $76,000 level. I do think we have a long way to go before we truly turn things around and see a complete change in the market, but the fact that we are not selling off while there have been so many major issues around the world, including the war in Iran, is something that you cannot ignore.
With that being the case, I like the idea of buying dips and building a larger position, but I also recognize that traders will have to be very patient and they will have to take their time with a smaller position, perhaps building up as we eventually turn things around.
Conversely, if we were to break down below the $64,000 level, then we could open up a move down to the $60,000 level, which of course is a large round psychologically significant figure. And anything underneath there really starts to send Bitcoin plunging.