The Bitcoin market jumped a bit on Wednesday to test the crucial 200-day EMA. This is a market that continues to look positive, no matter what is going on in the world. In this environment, it’s a strong sign we are still rallying.
BITCOIN (BTC/USD)
The Bitcoin market has rallied a bit during the early part of the trading session on Wednesday as we continue to see a lot of noise in general, but interest rates are collapsing certainly have helped Bitcoin. And now piercing the 200-day EMA we’re starting to take on some technical noise. Above here you have the $84,000 level, an area that has been important previously and probably continues to be resistance at least in the short term.
If we continue to see issues with that area a little bit of a pullback I think would offer some opportunity. If rates really start to drop, it’s very possible Bitcoin could continue much higher perhaps towards $95,000. That being said I think that’s a tough ask at the moment but clearly, I think that’s the direction we’re heading.
Institutional Inflows and Market Resilience
This is a market that has really performed well since the beginning of the war even though it was going flat everything else was falling apart and here remains Bitcoin. Rates jumped Bitcoin stayed in consolidation. Ultimately, it is sometimes what a market will not do that is the real story. This is one of those times, I think.
Now granted it has sold off pretty drastically before then maybe that was the whole reason, but we have seen institutional inflows into ETFs that track Bitcoin and therefore I think it shows that there’s real interest here. The 200-day EMA of course will cause some issues but any pullback here more likely than not becomes a buying opportunity.