Bitcoin has rallied on Tuesday again, this time reaching to test the 200-day EMA. Despite all that is going on, Bitcoin remains viable.
Bitcoin
Bitcoin has rallied quite nicely during the trading session on Tuesday to threaten the 200-day EMA. By doing so, it looks as if this market is going to continue to be very bullish and I do think it's probably only a matter of time before you see this market try to break above that 200-day EMA.
By breaking above that 200-day EMA, you could have a scenario where the $84,000 level gets targeted again. The $84,000 level is an area that's been both support and resistance multiple times and I think it will attract a lot of attention.
Interest rates in the United States have drifted a little bit lower during the day and that of course helps Bitcoin because Bitcoin is pretty far out on the risk appetite spectrum. But quite frankly, Bitcoin has been ignoring the bond market for the most part anyway.
INSTITUTIONAL ACCUMULATION AND MARKET SENTIMENT
During the entirety of the war, Bitcoin has either held up or started to rally. This tells me that longer-term players are accumulating. Furthermore, when you look at inflows into ETFs that track Bitcoin, there's a clear pattern of positivity as far as volume is concerned so I do think that we are in the very beginning of a new bullish run in Bitcoin.
I can't give you many fundamental reasons for it other than somebody thinks it's too cheap and that somebody seems to be a lot of institutions on Wall Street.
The 200-day EMA could cause a little bit of a hiccup here, but that hiccup could be a nice pullback that traders may look to take advantage of, especially somewhere near the $78,000 level.