Bitcoin markets continue to see a lot of resistance just above current levels, although it must be said that the buyers are persistent. The Bitcoin market continues to build a larger base from what I can see.
BITCOIN
Bitcoin markets tried to rally to kick off the trading session on Wednesday, but we did give back some of the gains. That’s not a huge surprise considering that the market is sitting at a major resistance barrier and as a result, it would be a little bit difficult to just simply continue to scream to the upside.
Yes, we do have a certain amount of risk appetite returning to the market due to the ceasefire, but at the end of the day, the reality is that there are still a lot of concerns out there. I also recognize that there’s probably a lot of order flow right here around the $72,000 level.
Real Underlying Strength
That being said, Bitcoin has behaved quite nicely over the last month or so as the war has been going on. While everything else was on fire, Bitcoin was strangely steady and quiet.
With this being the case, it tells me that Bitcoin does not want to collapse, and it suggests that perhaps there’s real underlying strength here. Ultimately, I think anytime Bitcoin dips you should be looking at it as a buying opportunity, but you also have to recognize that Bitcoin is going to be very noisy, and it may take its time rallying again.
After all, there’s been a massive amount of damage done to this asset recently. Ultimately, I think you have a situation where traders are going to continue to look at this as a market that’s in accumulation and with the institutional flow into ETFs, it does suggest that there are plenty of people interested in getting long here.