The Bitcoin market pulled back a bit on Monday only to test the $60,000 level. This is a large, round, psychologically significant figure, and a lot of people will be paying attention to it. Furthermore, you can see that we have a bullish flag marked out on this chart, and I think it is likely that Bitcoin will continue to launch higher. The flag measures for a move towards the $85,000 level, so at this point in time I think that is the longer-term target for Bitcoin.
Granted, there has been a lot of noisy behavior in this market and crypto in general, but at this point it should not be a huge surprise as crypto markets tend to be very choppy and noisy to say the least. I think that the absolute “floor in the market” currently is the $55,000 level, as we continue to see plenty of people looking to get involved in Bitcoin through ETF markets and other forms rather than simply buying Bitcoin itself. With this being the case, the market continues to have a bit of a built-in buying mechanism.
If we were to break down below the $55,000 level, there is a lot of support underneath at the $50,000 level as well, so it is really not until we break down below there that I would consider shorting Bitcoin, something that has clearly been a bit of a train wreck to try to do recently. With that being the case, I think that if you build up a position with the occasional bits and pieces, you could have a nice longer-term investment setting up. Bitcoin continues to attract a lot of attention, as the cryptocurrency markets have been one of the best performers of the last several years. We are most certainly reaching towards the all-time highs yet again, and that should continue to be the case. I believe at this point the market should continue to be one that you pay close attention to and take advantage of what is a bit of a runaway trend. Any pullback at this point should be thought of as potential value, as this is the premier currency in what is one of the hottest sectors in the world. While there have been some people predicting $100,000 by the end of the year, I do not agree. That being said, I think $100,000 will happen sometime early next year.
