Bitcoin continues to rise overall, despite the fact that there are a lot of concerns around the world, and the fact that it is “far off on the risk spectrum.”
BTC/USD
Bitcoin continues to see buyers jump into the market as interest rates dropped early on Friday and it now looks as if we are doing pretty much whatever we can to keep the uptrend going. We’ve seen a nice turnaround in the Bitcoin market for some time now and I think you have to look at this as a continuation of everything that had been going on previously. With that being the case I do like the idea of buying Bitcoin on dips and I do believe that Bitcoin will eventually try to find its way back to the 200-day EMA which is currently sitting right around the 82,200 level.
If we can break above there then we will probably have a serious challenge on the 84,000 level which has been important multiple times in the past. It was a massive support level for a while and now it looks like it is possibly going to be resistance. Breaking above that then I think opens up the floodgates.
Technical Indicators and Institutional Support
If you look at Bitcoin over the last several months even as the world was falling apart it seemed like Bitcoin was at least holding its own. That in and of itself was probably a signal. Furthermore, we are starting to see more inflows from institutional traders into the Bitcoin ETFs and that of course is a good look as well.
With that being the case, I remain bullish of Bitcoin at least in the short term but I also recognize that things could get a little bit messy along the way. With this being a very volatile market under the best of circumstances I do it with small positions and then just add when it works out my favor. I believe that the 50-day EMA is currently your support and if we break down below then we have even more support at the crucial 72,000 level.