Bitcoin Technical Analysis
Bitcoin has initially pulled back just a bit during the early hours on Wednesday, only to turn around and show resiliency yet again. It’s been an interesting early morning session because precious metals also got hammered but much like Bitcoin, are also turning around. So I’m not really sure exactly what’s going on, although I suspect it probably has something to do with the bond markets.
Nonetheless, Bitcoin looks as if it is trying to continue its recovery from $60,000, which of course is a large round psychologically significant figure, and a lot of people will be paying close attention to it. It also has proven itself important more than once in the past. Because of this – the “market memory” is something worth thinking about.
With that being the case, I like the idea of buying Bitcoin, but I don’t necessarily think that it needs to be a huge part of your portfolio. If we were to turn around and break down below the $58,000 level, then we could see a significant sell-off, but keep in mind that the $60,000 level is the bottom of the overall consolidation range that we’ve been in after that massive inflow into the Wall Street ETF.
So I definitely think market memory has come into play and I think a lot of people are going to continue to look at this general vicinity as potential value. That doesn’t mean that it’s going to be easy for Bitcoin to take off from here, but if the overall pattern continues, we should continue to drift higher from here, eventually looking towards the $67,000 level, maybe even as high as $73,000.
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This article was originally posted on FX Empire
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