Bitcoin initially declined Monday, rebounding around $52,000. Long-term bullish with $55,000, $60,000 targets. Short-term support $47,500, 20-day EMA. ETFs may drive up. No interest in shorting.

• During Monday's trading session, Bitcoin slightly declined at first, but it later recovered and began to show signs of life once more.
• As a result, it appears like the market will keep consolidating to work off some of the excess froth from the rise.
• To put it mildly, this is quite normal.

Looking at the Bitcoin market, you can see that on Monday morning, we did first retreat a little bit, but we later recovered and showed signs of life. The fifty-two thousand dollar mark appears to be a bit of a price magnet going forward. It also makes a good deal of sense that traders are only attempting to work off a lot of the froth from the move higher as we consolidate in this range. The $52,000 mark has previously served as significant resistance on several occasions. Thus, it should come as no great surprise that we would decide to grind our teeth here. Now, what will propel this market higher is the question. I predict that there will only be straightforward inflows of ETFs, which will allow for a move to the $55,000 mark and subsequently the $60,000 mark. The $47,500 level and the 20-day EMA are expected to be possible support levels for short-term pullbacks.

Long Only

(Click on image to enlarge)

Right now, I'm not interested in shorting Bitcoin. From a longer-term perspective, it is just too positive. What occurs now that we have an ETF is the question. I think the market will move, and probably not in a way that most traders would prefer. There will be less volatility in this climate. Therefore, even while it might make the concept of Bitcoin functioning as money relatively plausible, the truth is that once institutions become involved, the market that has allowed people to experience extreme swings in a short period of time for years could potentially vanish. Additionally, it gets lot simpler to short Bitcoin, so be mindful of that right away. Having said that, based on what I can see on the chart, it's still bullish right now; we are just taking a little break to move higher in the long run. Given enough time, I think this break will be something that people will look at it as yet another opportunity in a market that doesn’t seem like it wants to slow down for any significant amount of time.

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