The Bitcoin market pulled back just a bit on Friday but found the $60,000 level to be supportive enough to keep the momentum to the upside. As you can see on the chart, I have drawn a bullish flag, and it is worth noting that a move to the upside could mean that Bitcoin could go as high as $85,000 over the longer term. Granted, that is a longer-term call, but it certainly looks as if the market is trying to build up the momentum to do something like that. The $60,000 level has offered quite a bit of interest in both directions, so now it should be the next support level from a longer-term standpoint.
The market breaking down below the lows of the last couple of days could send prices down to the $55,000 level, but I also believe there is plenty of support in that general vicinity, especially as the 50-day EMA is racing towards that region. After that, then you have the $50,000 level which would offer significant support as it was previous resistance. Anything below the $50,000 level would have me concerned about the Bitcoin market, but crypto in general has been skyrocketing as of late. For what it is worth, Ethereum has made an all-time high during the Friday session, and it is likely that Bitcoin will try to do the same thing in the next few sessions.
The US dollar has been getting beaten up on for the most part, but the Friday session was a little bit of recovery for the greenback, and despite this, Bitcoin rallied anyway. This is a very good sign, and I think we are likely to continue seeing value hunting going forward. If we get a 5% drop, it is very likely that we will see plenty of buyers willing to pick up the market. I do not think that there is anything that the markets are about to see anytime soon that will push this market lower. You simply cannot short Bitcoin, because it is a great way to lose a lot of money. Ultimately, I think this is a market that will offer plenty of opportunities if you are simply patient enough to find a little bit of a pullback.
