Bitcoin has been choppy on Wednesday, as we are looking at a retest of the previous resistance barrier, the top of the ascending triangle.
BTC/USD
Bitcoin is making quite a bit of noise during the trading session on Wednesday as the market tested the top of the previous ascending triangle and now has found buyers coming in to pick up a little bit of value.
I think ultimately the question will be what happens next with risk appetite, as we clearly have a lot of concern when it comes out in the markets via the headlines coming out of the Middle East. Supposedly, we have some type of memorandum of understanding as to where we are going next, but really at this point in time, I think what you need to see is more institutional involvement in Bitcoin, which had picked up previously but now looks to be waning a bit.
If we can rally from here, it's very possible that the market may go looking to the 50-day EMA, an indicator that a lot of people watch anyway, and it is sitting just above the 70,200 dollars level, and then after that, you have the $72,000 level, which has been important a few times in the past.
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Market Momentum and Potential Bottoming Structure
Ultimately, I do think this is a market that is trying to build up some type of bottom, but it will take a certain amount of momentum to really get this thing moving. This will be a Herculean task, but there are enough moving pieces out there that could get things moving.
I don't have any interest in shorting Bitcoin at this point. Quite frankly, it's shown itself to be too resilient, and with that, I believe you have to look at this as a market that remains volatile and noisy.
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