- Bitcoin attempted an early Friday rebound but quickly failed at structural resistance, highlighting ongoing weakness.
- Price action suggests either a continued downtrend below $80,000 or the development of a broad consolidation range amid cautious institutional sentiment.
Bitcoin rallied a bit in the early hours on Friday, but has given back the gains rather rapidly as soon as we hit any type of structural resistance. By hitting this resistance, it shows that we continue to look very weak, anemic, but it is worth noting that we did, in fact, at least try to bounce from the crucial $80,000 level.
We are currently hanging around the $92,500 level, which I think extends to about $94,000 as a barrier. And as we cannot break above it, I suspect this means that we are going to see one of two things play out next. Next, we will see a continuation of the downtrend, and that really isn't confirmed until we break below $80,000, or we see some type of range start to get built.
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Potential for a Range or Further Breakdown
Bitcoin has lost so much over the last couple of months that I certainly am not bullish, but a range going between perhaps $80,000 on the bottom and $92,500 on the top, then that's not the worst case scenario. And in fact, it could be a sign that Bitcoin is in fact trying to find some type of bottom, trying to find some type of acceptance of price, and trying to find people willing to jump back in. Institutions are heavily involved in Bitcoin now, and they don't like losing 30% in a month or two.
So, with that being the case, institutions are probably very cautious at this point. And the fever pitch that we had seen after Wall Street adopted Bitcoin as an ETF seems to be all but gone. The question going forward now is, what is Bitcoin? And we still don't really have a clear answer. That doesn't mean that it's going to zero, but I think you're going to have to really rethink this entire marketplace. It's no longer a situation where you just buy and make digits go bigger. It is now a traditional financial asset. And as such, it's going to have to deal with fundamentals.
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