(MENAFN- Daily Forex) Bitcoin markets rallied on Wednesday to show signs of consolidation yet again, as we sit just below the crucial and structurally important $60,000 level. The $60,000 level has previously been supportive, so it should now be resistive, just as we have seen over the last couple of days. If we can break above there, then obviously that would be a very bullish sign.
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Bitcoin has had a bit of a pullback, but it has been relatively mild as far as how crypto markets behave. Ultimately, the markets continue to favor buying Bitcoin, but there are a lot of concerns out there as to whether or not the Federal Reserve is going to raise interest rates. While I know most maximalists out there will think of that as heresy, the reality is that the Federal Reserve and its printing of fiat currency certainly has a significant effect on what happens in crypto markets. With that being said, I think it is probably only a matter of time before Bitcoin does rally, if for no other reason than some people are using it as a hedge against inflation.
Simply put, we are in an uptrend and uptrends typically run much longer than people anticipated. Said another way, momentum begets more momentum. There is obviously a lot of demand out there for Bitcoin, as the new ETF has been subscribed to quite nicely. The market has been very choppy as of late, but that is typical with this market; it tends to shoot straight up in the air, consolidate, pull back a bit, consolidate more, and then shoot straight up in the air again. As things stand right now, I believe that the $50,000 level is the“floor in the market”, so that is worth paying attention to. The market has been one that a lot of people have paid close attention to over the last couple weeks, and it certainly looks as if we are trying to build up enough momentum to finally make a move higher.
For what it is worth, Ethereum is currently testing the all-time highs. Typically, one of these markets will lead the other, and in this case, it might just be Ethereum. Nonetheless, there is nothing on this chart that even remotely suggests that you should be shorting Bitcoin anytime soon.
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