The Bitcoin market continues to see a lot of noise with the interest rate situation and the latest headlines coming out of the Middle East conflict.
BTC/USD
Bitcoin continues to struggle mightily on Friday as we are dropping towards the $65,000 level. This is an area that continues to be important, at least in short-term moves and timeframes.
The market breaking down below there opens up the possibility of a move down to the $60,000 level. The $60,000 level is a large round psychologically significant figure that a lot of people will be watching. If we were to break down below there, then it opens up a drop from there that could be rather significant.
Impact of Interest Rates and Geopolitics
Keep in mind that interest rates climbing continue to work against Bitcoin as it is considered to be a very risky asset. If the market were to turn around at this point, then you probably will see interest rates in America dropping at the same time.
The 50-day EMA currently sits at the $72,000 level, an area that's been a bit of a barrier. If we can clear that level, then it opens up the possibility of a move to $76,000 and then eventually $84,000.
That being said, it looks very much like a market that is going to continue to watch the Middle East and what influence that has on risk appetite in general. Bitcoin was absolutely hammered before we got here and now to expect it to suddenly shoot straight up in the air during a war is probably a bit of a stretch.
That being said, it has at least held its own, maybe just because of the reason that the market had fallen apart a couple of months ahead of it. We'll just have to wait and see how this plays out.