Bitcoin was positive during Friday, defying the risk appetite concerns of the broader markets. With this, I continue to think we eventually break out.
BTC/USD
Bitcoin was positive during the trading session on Friday despite the fact that there is so much uncertainty around the world. This is something that I have noticed in Bitcoin for a while that we are simply showing signs of at least resiliency if not bullishness in the face of what should be thought of as a very difficult trading environment.
Ultimately, I think this is a market that is trying to tell us something. Despite the fact that rates are extraordinarily high and despite the fact that there is a lot of uncertainty in the geopolitical spectrum the reality is that Bitcoin wants to go higher. You should also keep in mind that a lot of institutional players have gotten involved in Bitcoin recently as inflows are starting to pick up in some of the ETFs.
Institutional Demand and Bond Market Influence
So, with that I think Bitcoin remains one of these assets that we just have to watch because it just does not fall despite the fact that I could probably give you 100 reasons for it to do exactly that. In this environment I suspect it is probably only a matter of time before we do jump higher, but I think maybe we need a little bit of help from the bond markets in order to get an idea as to where we are going to go next.
The interest rates in America continue to be a major driver of what is going on around the world, and I do think that we are looking at the possibility of seeing a massive move to the upside that will catch a lot of people offside. If we can clear the $76,000 level, I suppose we will see a lot of FOMO trading. Between now and then short-term pullbacks continue to look like they are buying opportunities.
Potential signal: I am buying BTC at $76,200. This could be over the weekend, if there is good news from the meeting in Pakistan. I would have a stop at $70,000 and looking for Bitcoin to reach $81,200.