Bitcoin Technical Analysis
The Bitcoin market has bounced around in general, but at this point in time, I think we have to look at a couple of major levels. The $62,000 level is an area that previously had been resistance, and now it offers support. To the upside, we have the $65,000 level and the $66,000 level both offering resistance, all things being equal. This is a market that has been overdone a couple of different times, and we have broken above the $60,000, the $62,000 level and it looks like we are going to see a little bit of working off of the excess froth.
The biggest problem with Bitcoin anymore is that nobody really knows what to do with it. It’s a Wall Street ETF and that was good for a couple of weeks but now it needs to defend itself and by defend itself I mean show that it has a use. We haven’t seen that yet. It’s been something like 13 years, 14 years. So, the question now is, will it be a speculative asset and never really used? And I suspect a lot of people think like that, or would it actually have some type of utility and be used and become profitable and valuable in that sense? I suspect that depending on the use case scenario, it could look quite different as far as the angle of ascension in price. It’s an ETF now. So, it’s basically the S&P 500.
Wall Street won’t let it collapse. There’s just too much money to be lost. But at this point in time, I’m hearing a lot of chatter from Bitcoin traders that want to know what happened. Well, what happened is you got what you wanted. It’s a legitimate Wall Street asset subject to all of the same manipulations and squashing of volatility that anything else is. So, it is what it is. In the short term, I think we will continue to work off some of the short term froth. A move above the $66,000 level could open up a much bigger move.
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