- Bitcoin initially did try to rally a bit during the early hours on Monday, but it appears that the $67,000 level held its market memory and offered resistance.
- At this point, we then started falling towards the $65,000 level, which so far at least has held as support.
Bitcoin Looks Heavy
That being said, it certainly looks as if we are starting to see the Bitcoin market look a little heavy. And if that's going to be the case, we could very well see a significant pullback, maybe towards the $60,000 level, where we have seen a lot of buying pressure previously. If that does end up being the case, it doesn't really change the technical analysis too much because...
Since we had that 92% gain in six weeks, the market has bounced around between $60,000 on the bottom and $73,000 on the top. In other words, we may just end up looking for the bottom of the range again. It'll be interesting to see how this plays out because Bitcoin has been suspiciously non-enthusiastic after the ETF announcement and the initial surge into it via Wall Street. The question is, are they going to leave people holding the bags? I mean, that's the job of Wall Street, is to sell you stocks before they fall. That might be what just happened.
Now, that doesn't necessarily mean that Bitcoin over the longer term can't rally, but we may get a nasty and deep correction if we drop below the $58,000 level. We just narrowly avoided that about six weeks ago, so it's something to keep in the back of your mind, although admittedly, it's not an immediate threat right now. I would expect a lot of choppy behavior, and as things stand right now, I am looking to buy on dips. The question is, do I buy it at $65,000 or does it break down and has me buying closer to say $60,000? That remains to be seen.
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