Bitcoin has dropped on Tuesday as we continue to see a lot of concern out there when it comes to risk appetite. Bitcoin has been a choppy place to trade recently, and this looks likely to continue.
BTC/USD
Bitcoin has dropped on Tuesday as we continue to see a lot of concern out there when it comes to risk appetite. With this being the case, traders continue to watch the volatility of Bitcoin with a bit of hesitation, and it's probably worth noting that the $60,000 level is likely to remain massive support and an area that a lot of people will be watching closely.
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If we were to break down below that $60,000 level, it would obviously be very negative, opening up a drop down to the $50,000 level. Because of this, I think you also have to look at this as a potential buying opportunity if we bounce from there.
Analyzing Key Support and Resistance Levels
The $68,000 level above could offer a bit of resistance, especially now that the 50-day EMA is reaching towards that area, but breaking that would kick off the next leg higher in this market.
The question now is whether or not we are about to form a double bottom at the crucial $60,000 level, or if Bitcoin is getting ready to unravel. At this point, it is probably a bit early to guess as to where we go next, as the Bitcoin market is so volatile under normal conditions, let alone with the noise from the headlines we have at the moment.
Bitcoin has performed very poorly for some time, but it's worth noting that at least during the war, most of the action was somewhat encouraging. This is a relatively recent development that we have gone bearish again, so a major point of inflection awaits traders to pay close attention to in this general vicinity. Caution is the better part.
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