- Bitcoin has fallen a bit against the US dollar during the trading session on Thursday as we continue to see a lot of negativity.
- At this point, it'll be interesting to see how this plays out because Bitcoin is not being supported by Wall Street, which basically controls Bitcoin at this point as the ETFs have flooded the markets with so much money.
Support Below
The $56,500 level underneath is an area that we had tested early during the session and previously during the month of April. It's also the 50% Fibonacci retracement level from the surge hire after the ETF announcement, so it does make a certain amount of sense that buyers coming in. However, if we break down below the $56,000 level, I suspect that the bottom is going to fall out and we could drop to $51,000 rather quickly.
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After that, you would imagine that $50,000 would be the next area where people are willing to step in and try to support Bitcoin. The biggest problem with Bitcoin, of course, is that, well, it's not really used for anything. So until it gets a real life use case scenario and...
I know all of the theoreticals and I understand that there are some small economies around the world where it's used. Bitcoin is a bit of a gambler's asset. I don't think that will change anytime soon. This is all about playing momentum. It's got nothing to do with any use case scenario at all.
The jobs report on Friday could have a major implication on where Bitcoin goes next because it will have major implications where the US dollar goes. If we start to see the US dollar really strengthen, in other words, we see a lot of jobs added, and therefore a lot of inflationary pressure, then Bitcoin is probably going to break down. If the US dollar gets absolutely hammered, it's possible that we turn around and try to get to $60,000. Anything above there sends this market back towards the top of the overall consolidation.
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