The Bitcoin market continues to see a lot of volatility at this point in time, as rates in the US continue to strengthen, and this makes riskier assets a bit difficult to hang onto.
BTC/USD
The Bitcoin market continues to see a lot of volatility, which makes quite a bit of sense considering that the world is essentially on fire and of course the interest rate markets are starting to see higher yields. Those higher yields make certain assets less attractive, including Bitcoin.
While Bitcoin has recently made a nice bottoming pattern and it certainly looks like it is trying to find its floor, as long as the rates in America continue to rise a lot of risk appetite could come out of the market because quite frankly a lot of larger firms may simply elect to take advantage of those higher rates in order to make a stable profit.
Technical Levels and Relief Rallies
In that case, I believe that you have a situation where things continue to be very noisy, but with that, I also recognize that as soon as we get some type of relief when it comes to interest rates in America, we could see this market jump a bit.
The 50-day EMA being recaptured at the $72,600 level opens up some of the possibility of an attack on $76,000. Above there, you could see this market go looking to the $84,000 level.
If we dropped from here, the $65,000 level could very well end up being the target, but I am not inclined to short Bitcoin because quite frankly it had fallen so much over the previous several months that I am looking for some type of value here. This is something that you will have to be very patient with, but it is a possibility that we are in the process of trying to find the floor.