- Bitcoin has fallen a bit during the Monday session to kick off the week, showing signs of hesitation.
- That’s probably not a huge surprise, considering that the market had gone straight up in the air previously, and therefore it does need to take a bit of a breather.
- Underneath, we have the $65,000 level, which of course is a large, round, psychologically significant figure, and an area where I think a lot of psychology comes into play.
- Furthermore, the 20-Day EMA is starting to reach that area.
Buying on the dips
I think Bitcoin continues to be a “buy on the dips” type of scenario going forward, as there is obviously a lot of interest in the market at the moment. Remember, Wall Street continues to throw a ton of money at this market via the ETF, and therefore there are plenty of new funds trying to get involved. Every time this market pulls back there should be plenty of buyers on this dips, if for no other reason than trying to get a better price for their customers. If we break down below the $65,000 level, then I think we could really see this market drop toward the 50-Day EMA given enough time. That being said, I think you also have a situation where traders will look at any dip as something that you need to jump into. After all, there must be a ton of “FOMO” out there.
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On the upside, the $75,000 level will more likely than not end up being a bit of a barrier, and it obviously has a lot of psychology attached to it. Breaking above that would obviously be very bullish, but right now I don’t see that happening very easily. In the short term, I suppose the most bullish sign will be if we just simply stay above $65,000 and grind sideways in an attempt to work off some of the excess froth that we had seen. Either way, I don’t really think it matters what you feel about Bitcoin, the reality is you cannot get short of this market anytime soon.
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