The Bitcoin market has been somewhat sideways over the last few days, as we are trying to digest all of the recent gains in this very volatile market. This is a market that is pretty far out on the risk spectrum, so it makes a lot of sense that we are here.
The Bitcoin market has been pretty choppy during the early hours on Wednesday as we are hanging around the $61,000 level yet again. In general, this is a market that I think will continue to be very noisy, but if we can turn around and break above the $63,000 level, then it’s very likely that we will go much higher, perhaps reaching to the $70,000 level.
There is a significant amount of support underneath, especially near the $58,000 level, so as long as we can stay above there, I think we’re more likely than not going to continue to go sideways. If we break down below the $58,000 level, then that could lead to a move down to the $55,000 level and then down to the $50,000 level. Keep in mind that Bitcoin is pretty far out on the risk appetite spectrum.
So, you need to see risk appetite take hold of the market and have people willing to put money in some of these riskier places in order for Bitcoin to thrive. Ultimately, this is a market that I believe will remain noisy, but as it’s a Wall Street ETF at this point, I also think there’s a certain amount of support built into it. After all, those institutions aren’t going to be interested in losing money. So, I think of this more or less like the S&P 500 or maybe the NASDAQ 100 these days. And it will more likely than not follow right along.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.