- Bitcoin has fallen just a bit during the early trading session on Thursday but it appears that we continue to hang on to the $67,000 level.
- This is an area that has seen a lot of action in the past, so it's not a huge surprise to see buyers stepping in and trying to take the market back to the upside at this point.
Wall Street changes Bitcoin
The fact that Wall Street is now involved in the Bitcoin markets via the ETF space makes quite a bit of a difference in the cryptocurrency markets in general. Bitcoin will now act more like an index, probably something akin to the S&P 500. People who have been trading Bitcoin for quite some time are in for a bit of a surprise as volatility will be dampened, but that makes sense considering that institutional traders are now involved. They do not like the idea of 15% swings in a single session, and we'll do everything they can to avoid it. If we were to start seeing that again, institutions will just simply leave.
We had recently seen a 92% increase in just six weeks as the ETF was approved, and since then have seen three months of sideways consolidation period this does make a certain amount of sense considering that the market had gotten so far ahead of itself. However, one would have to think that sooner or later we have to break out of this area and I will be watching with great interest near the $73,000 level as it has been such a resilient resistant barrier. Breaking above that level opens up the possibility of Bitcoin going to the $75,000 level, and then followed very quickly by $82,500 above there. To the downside I believe that the $66,000 level being broken by the short sellers will open the possibility of a move down to the $60,000 level, where I see even more support. At that point, I would imagine there are a lot of traders willing to step in an buy “cheap Bitcoins.”
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