Bitcoin initially rallied on Wednesday but continues to see a bit of overhang in this market, and of course, concern.
At this point, I remain bullish but want to see a “V-shaped” bounce to get involved.
Bitcoin initially tried to rally a bit during the trading session on Wednesday but gave back gains as we continue to see a lot of questions asked of this market in general. That being said, I think we also have to keep in mind that during the war and when it broke out Bitcoin actually did fairly well, which is a bit counterintuitive as interest rates skyrocketed.
That of course was based on the idea of energy inflation but typically speaking as there are higher rates the less markets like Bitcoin will do as it is a non-yielding asset. If we can turn around from here and I do think that happens, I think we will probably make another play at the 200-day EMA, possibly even the $84,000 level. If we break down below the 50-day EMA, then it opens up a move down to the $72,000 level which I think is the absolute floor.
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It isn't so much that I'm a massive bull when it comes to Bitcoin, it's more or less just the fact that it won't fall significantly that has me interested in it. Institutional inflows into ETFs of course continue to be a major driver as well. So, with that I like the idea of buying these dips as soon as we bounce.
I could get involved on the right-hand side of the V because it gives you the ability to have a very natural stop-loss placement underneath the V itself. It also shows you that momentum is turning back into the market to the upside, and I think that's really what we need to see here in order to get long.
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