The Bitcoin market has pulled back significantly during the trading session on Thursday, for the first time in what seems like a lifetime. The ETF rush has abated a bit, and therefore it does make a certain amount of sense that we would see a little bit of a pullback. The market had been parabolic for two weeks now, and we are still at all-time highs speaking. Because of this, I think the market continues to be one that you buy occasionally, any time it offers value.
Looking at this chart, I believe the $60,000 level should be supportive, especially as it was such an incredible break out from that level. We have formed a hammer at that region, so that also suggests that there are buyers in that general vicinity. If we break down below there, then it is likely that we go looking towards the $55,000 level. The $55,000 level was a massive area of consolidation, and then finally we would have the $50,000 level where the 50 day EMA sits. That for me at this moment in time is the “floor the market”, so therefore I have to think of it as a very important region.
When you look at the chart, you can see that we have been parabolic, so it is hard to think that suddenly we are going to completely turn around. It is going to be your job to find some type of value that you can take advantage of, and it is worth noting that crypto in general has done fairly well as of late. Ethereum is at an all-time high, just as Bitcoin is. In other words, a lot of money is flowing into this sector at the moment, and I just do not see how that changes anytime soon.
As far as a target is concerned, it is almost impossible to come up with the longer-term one, because quite frankly there are no real metrics to measure. Despite the fact that Bitcoin has been parabolic, the reality is that it is not used for anything. I know there are a lot of thoughts about what it might end up being, but we still do not even know that at this point. It is not like buying gold or a stock, the utility is still unknown. With that in mind, the next target is $70,000 just because it does tend to respect and thousand dollar increments.
