Bitcoin has pulled back a touch in the early part of the Monday session, as we are likely to continue to see the 200-Day EMA offering a bit of a wall.
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Bitcoin has pulled back slightly during the trading session on Monday as we continue to see quite a bit of reaction to the 200-day EMA. That being said, this is a market that I think will continue to see a lot of buyers, especially on dips. After all, the market has been very bullish for some time, and this was even despite the fact that we have seen wars break out.
It is still a situation where the Bitcoin market has ignored all of that and just simply started to grind to the upside. Short-term pullbacks I think are buying opportunities and I think the 76,000 level is your significant amount of support based on the 50-day EMA and the previous action that we had seen before.
Watching the 200-day EMA and the 84,000 Level
The market breaking to the upside from here and breaking above the 200-day EMA could open up the possibility of a move to the 84,000 level. Anything above the 84,000 level opens up the possibility of an even bigger move. Keep in mind that the 84,000 level was both support and resistance for quite a while and ultimately this is a market where I do like the idea of buying dips, but I also recognize that there will be quite a bit of volatility from time to time.
With this I believe that traders continue to look at Bitcoin as an asset that was oversold for a while and I do believe that a return to normalcy is probably what we are looking at. I think in the longer-term traders will continue to take advantage of this, but I also recognize that traders will continue to see a lot of volatility based on the latest headlines coming out from the Middle East and of course everything else. Ultimately this is a market that I like but I also recognize that it is a market that you need to be cautious with your position size.