We have been consolidating for a while, and that, of course, makes a certain amount of sense, considering that we shot straight up in the air. 92% heading into this consolidation phase. So, all things put together, I think this is a scenario where this ends up being a buying opportunity. The $74,000 level above, of course, is an area that we've seen a lot of noise at and more specifically, resistance. However, I think it can only hold for so long as we have seen so many people involved in this market.

The Resistance Above

If we can break above the $74,000 level, then it's likely that BTC/USD could continue to go much higher, perhaps reaching towards the $80,000 level. Underneath, I see the $60,000 level as a major support level. And of course, we also have the 50 day EMA underneath as well. In general, this is a market that I think continues to see a lot of choppiness and consolidation to work off that excess momentum. Momentum can be a fleeting thing at times, but in the end, the trend is still ensconced in the market.

(Click on image to enlarge)

Remember a lot of the hot money that had flown into the Bitcoin ETF is probably now long gone, meaning that it will behave more like a normal market. With that, I am positive and bullish on this market, but I also recognize that we don't necessarily think that we should be jumping in with both feet. I think this is just a longer term secular bullish market. The inflows into the Bitcoin market will continue to be massive, as institutional traders now have an easy way to get involved.

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