Market participants have deleveraged significantly following the October volatility which sent Bitcoin and other digital assets much lower. Most of the time we have seen shifting capital go into defensive option structures rather than perpetual futures or the spot market.
Until a clear signal emerges from the Federal Reserve, Bitcoin is effectively bouncing into supply struggling to sustain a significant breakout above the short-term psychologically significant $90,000 level. If we were to break above the $90,000 level significantly, perhaps breaking above the 50-day EMA as well, then it could open up a move to the $95,000 level.
If the market were to turn around and fall rather significantly, slicing through the $84,000 level, then I think Bitcoin finds itself in serious trouble. Right now I don’t expect that, but rather I expect a lot of range-bound trading between $84,000 on the bottom and $95,000 on the top until something changes. Short-term range-bound systems probably fare best. With that being said, I like the idea of buying dips here, and getting rid of profitable trades after they make a short-term run.
