Bitcoin continues to chop around the $60,000 level, an area that remains important to the markets overall.
Bitcoin
Bitcoin continues to see a lot of volatility on Friday as we hang around the crucial $60,000 level. The $60,000 level is a large, round, psychologically significant figure that a lot of people will be watching in general. This is an area that has proven itself to be supported recently.
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Now the question, of course, is whether or not we can find some type of impulsive candlestick in one direction or the other. If we were to break down below the bottom of the candlestick from the Thursday session, then I think it's probably only a matter of time before we go looking to the $50,000 level.
A rally at this point in time, perhaps breaking above the top of the Thursday candlestick, could open up a move to the 50-day EMA, which is sitting just above the $67,000 level. That would be a simple consolidation where we are trying to form some type of bottoming pattern.
Risk Appetite and Long-Term Institutional Outlook
All things being equal, this is a market that I think remains noisy and choppy, and there are a lot of concerns about the overall risk appetite out there, which, of course, has a direct influence on Bitcoin. Bitcoin remains very noisy and very difficult to trade, but I do think longer-term institutional money will jump back into it.
Whether or not that ends up being a factor down the road remains to be seen, but I believe we have a situation where traders are looking at this and thinking that perhaps Bitcoin is going to continue to see a lot of support out there, or are we in fact going to see some type of breakdown that really sends this market lower?
I think the next couple of weeks are probably more of the same type of base-building exercise, but the first impulsive candlestick that I see, I am more than willing to trade in that same direction using the levels previously mentioned as targets.
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