Bitcoin Technical Analysis
The Bitcoin market has seen a bit of negativity during the trading session on Friday, as we are breaking below the $66,000 level. The $66,000 level is an area that’s been crucial, and now we will have to pay close attention to the $65,000 level and whether or not it will hold. Ultimately, this is a market that I think continues to see a lot of volatility mainly due to the fact that nobody really knows what to do with it.
Bitcoin has been fairly stagnant over the last several months, and I think that may continue to be the case although we may get an opportunity to pick up value on this dip. With this being the case, it’s probably only a matter of time before buyers come in and try to push this market higher. I have no issue whatsoever in buying Bitcoin at these lower levels, but I would not do so in huge positions. Quite frankly, this is not an asset that has proven itself over time, and now that institutions are involved it could be a very interesting set of conditions it finds itself in to say the least.
That being said, if we were to turn around and rally above the $67,000 level, that would be an extraordinarily bullish sign and perhaps push this market back toward the $72,000 level. Either way, I think volatility on short term charts will continue to be more or less just choppiness, and we will continue to see a lot of nonsensical noise.
If we were to break down below the $60,000 level, that would be a disaster for Bitcoin, perhaps leaving retail traders holding the bag once again, as it could signify a massive correction to the downside. Make sure that Bitcoin is only a very small portion of your portfolio, as it is not reliable enough yet.
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This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
