Bitcoin has been noisy on Tuesday as we initially rallied, but we did give back those gains to show signs of hesitation.
Ultimately, I think this is a market that is going to continue to move on risk appetite.
As interest rates rallied on Tuesday as the Americans and the Iranians are refusing to talk, I think you've got a situation where a pullback makes a lot of sense. Quite frankly, I’d be interested in some type of pullback that offers a little bit of value just above the 72,000 level, an area that also features the 50-day EMA.
If the BTC/USD pair pulls back from here and drop to that level and then again bounce, I'd be very interested in buying. On the other hand, if we can break above the 77,000 level, then I think that kicks off the next move to the upside.
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The Accumulation Phase
Bitcoin has been spending a long time forming a basing pattern and, quite frankly, doing it through the middle of a war that has caused chaos in most other markets. That is a very bullish sign.
But with this being the case, I think you've got a scenario where this is part of what a market isn't willing to do. The market just simply won't fall apart, and that means that all it needs is a good catalyst, maybe the end to the war and people willing to throw money into risk-appetite-based assets to really get going.
It's worth noting that institutions have been piling into Bitcoin ETFs recently, and that of course has a major influence as well. I think we are in the middle of an accumulation pattern.
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