The Bitcoin market rose on Tuesday, as ETF inflows continue to show signs of life in the institutional space.
Bitcoin
The Bitcoin market rallied a bit during the trading session here on Tuesday but has given back some of the gains as we were approaching a major high in the form of 76,000. The market is looking at 10-year yields below 4.30%, which is an area that I think remains very important in the 10-year. So, if we can continue to fall from here, that might be what finally pushes Bitcoin higher.
Short-term pullbacks at this point in time remain buying opportunities with me looking at the $72,000 level and the 50-day EMA levels are important. If we can break above $76, then fine, we'll just go looking into the 200-day EMA and it is something I expect to see sooner or later. Ultimately this is a market that is trying to bottom out, but we saw this in the months leading to New Years and then fell apart.
Institutional Inflows and Long-Term Investment
So, there is a little bit of concern here, but I do think that we are getting closer and closer, especially as institutional players are starting to buy the IBIT ETF and others that directly go into the Bitcoin market. With institutional inflows, that is a good sign that the bigger players are starting to pay attention to Bitcoin again. So, I like buying dips, but this is not a quick trade. This is an investment.
Perhaps a run to the 200-day EMA, basically $84,000. If we can clear that we could go much higher. This would be yet another 50% pullback in Bitcoin just like we've seen multiple times in the past. You're going to have to be very patient though because we're not screaming to the upside right now. It is worth noting that Bitcoin has performed extraordinarily well during the war. That's something that's caught my attention.