The Bitcoin market continues to be a tough place to be, but could also offer opportunities going forward.
Bitcoin
The Bitcoin market has fallen during trading on Friday as we continue to see a lot of choppiness, but I think this is one of your more interesting markets due to the fact that we are sitting above a massive amount of support in the form of the $60,000 level.
The $60,000 level is an area that's been important multiple times, and I think as long as we can stay above there you can at least make the argument that possibly the market is trying to find its bottom. If we could turn around and break above the $72,000 level it's likely that we could go looking to the 50-day EMA, possibly the $84,000 level.
Wall Street and Institutional Sentiment
That being said, this is a market that continues to struggle to find buyers and I think you have to look at this through the prism of a market that is trying to do everything it can to find its floor but at the same time Bitcoin has been left in the dust by Wall Street. Institutional investors are just not interested at the moment, and the retail investor just doesn't have enough money to get involved.
In fact, I think that's what's different this time because institutions typically don't chase assets that are down almost 50%, they just don't risk manage their positions like that. Retail traders on the other hand can do that but there's so much more money in the market right now that I think you have to look at this through the prism of a market that may have to form a basing pattern that would take quite some time to play out.
If we break down below the $60,000 level then I think the $50,000 level is the next target, anything below there could be like a massive meltdown just waiting to happen. Bitcoin could end up being a nice buying opportunity in this general vicinity but keep an eye on that $60,000 level and recognize that you have to be patient.