- As you can see, Bitcoin has had a rough ride during the trading session here on Thursday, as we are testing the $120,000 level.
- This is a market that I think you need to watch very closely because it does give you a little bit of a mass signal on what risk appetite is going to be.
- Now, I don't think that Bitcoin is going to fall apart, but we are starting to see the US dollar pick up some strength.
- That might not be what people are expecting to see. After all, I've started to hear things about how the US dollar is going to lose the world's reserve currency status. It's going to zero and everything else in between.
US Dollar Has Been Strengthening
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The reality though, is that the US dollar has been strengthening and that tells me there's probably a little bit of fear out there. So that works against Bitcoin. If Bitcoin drops from here and breaks below the $120,000 level, then you could see the $117,000 level offer a little bit of support and maybe even show a bit of a target. A little bit of a bounce opens up the possibility of a move to the upside.
Really at this point in time, I would also point out that the 50 day EMA is racing towards that level. So, there's a lot of things going on at the same time that's actually pro Bitcoin and we did recently reach an all-time high. So, I think ultimately, this is a market where people will be looking for value in the form of these short term pullbacks. I have no interest whatsoever in shorting. And I think given enough time; we will not only bounce but probably try to get back to the $125,000 level before we continue to go higher.
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