Bitcoin initially fell on Friday to break down below the $64,000 level, but we have turned around to form a bit of a hammer. This is a very bullish sign, and as you see, the hammer had formed on top of the bullish flag that we previously formed. Remember, the bullish flag measures for a move all the way to the $85,000 level, which is a big move just waiting to happen. By the way we behaved on Friday, it looks like we are trying to build up the necessary momentum to continue pushing higher.
It is worth noting that earlier in the week we had tried to take out the $70,000 level, but Bitcoin does tend to respect these $10,000 intervals, so it should not be a huge surprise to see that we could not do it right away. If we can break above there, then the market is likely to continue going much higher. In the short term, I look at the $60,000 level as support, and the fact that the 50-day EMA is reaching towards it tells me that there will be a certain amount of technical interest in the market in that general vicinity. We have seen Bitcoin and, by extension, crypto, do quite well over the last couple of weeks, so a bit of choppy and sideways action is probably somewhat likely. The market is continuing to see a lot of inflows due to the new ETF, and further down the road the other ones that are coming out.
We are starting to see some of the alt coins pick up steam as well, so I think that the Bitcoin market is going to drag the rest of them right along with it, and if we can break above that $70,000 level, I would anticipate that we will eventually go looking towards that $85,000 target. On the other hand, if we were to turn around and break down below the 50-day EMA, then we may revisit the $50,000 level, an area that I think would be attractive for buyers to get involved as it would represent a significant amount of “value” in a market that has been very bullish to say the least. Buying on the dips continues to be the best way forward.
