Bitcoin continues to see a lot of issues above, as the market continues to watch the $72,000 level for a ceiling, or hopefully, a breakout.
BTC/USD
Bitcoin continues to see a lot of trouble and at this point in time the market is continuing to watch the $72,000 level as a major resistance barrier and as long as the $72,000 level holds, then I think we have a situation where you are fading the rally and I think you also have to look at the $72,000 level through the purview of it potentially being a signal.
The $60 level underneath is a large round psychologically significant figure that also offers support, but furthermore, I think it also offers a bit of a target to the downside. Ultimately, I think we continue to see a lot of volatility and choppiness, and I think a lot of what we are seeing in Bitcoin is the process of trying to turn things around.
Institutional Impact and Market Stability
The market is likely to continue to see a lot of questions asked about what’s happening next and if we were to break down below the $60,000 level it would be a horrible sign for Bitcoin as it almost certainly drops to the $50,000 level after that.
Quite frankly, I think part of the reason Bitcoin is having trouble bouncing back is because so many institutions have been involved in the market that the retail FOMO crowd simply don’t have enough momentum and muscle to push the market higher anymore. Institutions don’t typically catch falling knives so at the end of the day what we need to see is Bitcoin go sideways for quite a while.
It has started to for a while, but we saw at the end of last year an attempt to do exactly that and then another collapse. With Bitcoin miners having to spend more money to mine a Bitcoin than it’s actually worth, that’s not a good sign either. I’m watching $72,000 because if we can break that maybe a short-term pop happens, but we need to see stability. We need this market to be boring.
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