Bitcoin has been a little bit positive during the trading session on Wednesday and as you know I've been watching this market fairly closely because I thought the 50-day EMA could be an area of interest and that actually has turned out to be true.
The 50-day EMA is a technical indicator that a lot of people will watch obviously, but we also have the fact that interest rates are dropping a bit and that helps risk appetite.
Keep in mind that Bitcoin is pretty far out on the risk appetite curve but remember that it held up fairly well during the war between the Americans and the Iranians, which was a bit of a surprise.
Everything else was falling apart and Bitcoin just kind of held steady.
Interest rates are still extremely high, but a little bit of relief is something that will get people interested.
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I think ultimately, we will try to get to the 200-day EMA again, but if we were to break down from here the market could go looking to the $72,000 level.
That's an area that has been important previously, but ultimately this is a market that I think continues to be noisy, and I do think that ultimately this is a market that had sold off so much that I think it does make a certain amount of sense that we probably see a spring higher in this market eventually as it had sold off viciously before the war.
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But we have seen institutional money flowing into some of the ETFs, and while things are kind of quiet now, if you look since the end of March, it's been a fairly steady grind higher.
A little bit of sideways action between the 50-day EMA and the 200-day EMA makes perfect sense to me.
I do like it longer term though.
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