Bitcoin tried to rally during the day but then fell apart again as we continue to see a lot of back-and-forth action right around the 50-day EMA.
While I do believe that we are still very much in an accumulation phase, I think we are probably going to see a lot of noise based on the fact that we have so much in the way of confusion around the world due to the fact that there is no clarity when it comes to the Strait of Hormuz, and of course, the overall supply chain issues.
This has people wondering what the central banks are going to do, and therefore, institutional traders are a bit concerned about what happens next with rates. This could cause some issue to see whether or not there is going to be more risk appetite.
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Key Technical Levels and Institutional Interest
If the BTC/USD pair can break above the high of the trading session on Tuesday, I think that's a very strong sign and I do think eventually it does happen. At that juncture, we could go looking to the 200-day EMA. Above there, then we have the $84,000 level. If we drop from here, the $72,000 level is an area that I think is your hard floor.
Ultimately, this is a market that remains very noisy and I think remains very choppy. But ultimately, I believe this is a situation where traders are trying to find value in what probably ends up being a longer-term move to the upside.
I don't particularly believe in Bitcoin, but I do believe in the fact that a lot of institutional inflows continue to head toward Bitcoin, and it's probably worth noting that a lot of people are looking at Bitcoin through a new lens as it sold off so viciously earlier this year. They may be trying to find value. This would be especially true of the longer-term believers.
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