Bitcoin Technical Analysis

The Bitcoin market has pulled back a bit after testing the crucial $74,000 level. At this point in time, it looks like the market is a little stretched, but the question now is whether or not we can actually get a daily close above $74,000 because that is the recent all-time high and it is also crucial. Remember, we tested that after the ETF came out of Wall Street and therefore it became more Main Street. All things being equal, I do think this is a market that eventually does go higher because of the ETF.

The ETF, of course, is a way to trade for people who don’t want to be bothered with custody and things like that. And of course, it gives Wall Street a nice flow of money. And therefore, the market is likely to continue to look at this as Wall Street’s pet project. And therefore, it has a certain amount of support. If you look at the action since February, it’s been a noisy affair, but I would venture to say that at this point in time, we have most certainly seen a lot of that froth worked off.

The question now, of course is, can we get momentum? The jobs number might be that answer, or maybe the presidential election on Tuesday. On a daily close above $74,000, I do think that gives the free and clear to go higher. A pullback at this point in time will more likely than not see a lot of noise right around 68,000 and then again at the 50-day EMA, both of which could offer support.

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