The Bitcoin market rallied a bit on Tuesday again to break out above a potential bullish flag pattern. At this point, it looks as if the $60,000 level will continue to offer a significant amount of support, just as you would anticipate as it is a large, round, psychologically significant figure. Furthermore, the market has been very bullish for quite some time, so this should just be a simple extension of what we have been seen all along.
If we were to pull back at all, I would be surprised if the 50-day EMA did not come into the picture and pick things up. After all, the 50-day EMA is widely followed by retail traders, which drive the bulk of cryptocurrency trading in general. The ETF market is now pushing the Bitcoin market as well, so all things lead to higher pricing, at least in the foreseeable future.
While I am not necessarily a maximalist, I do recognize that Bitcoin has a lot of money flowing into it, and it is a bit of a freight train at this point. I simply do not want to try to step in front of it and start shorting, although we all know that crypto does have a bad habit of correcting quite viciously. Nonetheless, when I look at this market, there is nothing on this chart that tells me I should be short of Bitcoin, and therefore I have to treat it as such. With that in mind, I continue to buy on the dips, not only Bitcoin but other currencies as well such as Ethereum.
When you take the “measured move” of the bullish flag that I have marked on the chart, it shows a target of roughly $85,000 over the longer term. That does not necessarily mean that we will get there tomorrow, but the way that Bitcoin moves at times, it could be much sooner than anything. It certainly looks as if crypto markets are starting to go haywire again, and more and more money will continue to enter the fray. With this, I look at every dip as an opportunity and I believe that the $50,000 level is currently the “floor in the market” for Bitcoin, and by some extension the entire crypto market itself.
