Bitcoin Technical Analysis
Bitcoin has plunged overnight, but it does look like it’s turning right back around, and it does look like the $75,000 level, at least at the moment, is still offering support. With that being said, the market is likely to continue to be very noisy and it’s also likely to be a situation where we won’t really see much of a bounce until the risk appetite comes back into play. Bitcoin was the first to fall, and it could be the first to turn things around, we don’t know yet.
And right now, risk appetite is going to be a very fickle and dangerous thing. If we can rally from here though, I do think you have a real shot, and Bitcoin is trying to recover and go toward the $85,000 level, where the 200-day EMA currently resides. If that does end up being the case, then it could make a nice short-term play.
Longer-term players are watching the $75,000 level with interest, not only due to the fact that the $75,000 level had previously been a barrier, but of course, it is also a large round psychologically significant figure that people will, of course, watch due to that and options trade. So, at this point, we may be getting ready to bounce again. Longer term though, I think at best, we’re still going to hang out in the same consolidation area that we have been in for a little while now.
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