BTC Can’t Crack $60,000
The highs of $60,000 appear tough to crack for BTC as price failed to push higher over the weekend.
The bull run that has taken BTC all the way from $10,000 to its current levels has looked like it was going to crack a couple of times, but so far nothing has eventuated.
The money keeps on flowing into the world’s largest crypto and as yet even the technical levels have been holding up.
I’ve been suggesting that one of the drivers for this has been the fact that a number of mining operations have been taken out, which of course, limits the supply side of the equation. I am of course, quite dubious on the origins of Bitcoin and this is one of the underlying issues I think it faces. Similarly, the fact that we are staring at new regulation for the entire sector in the months ahead just does not bode well.
Soon, cryptocurrency will be valued based on utility. I like to think about it like the dot-com boom. During the early days, all tech startups were flying. Ultimately only the best survived. Bitcoin to me is like a company with no earings and no potential to earn. A high PE stock valued on thin air. How do you value a company with no earnings and no utility? An interesting question.
Technical Levels
Bitcoin has been battling both the $58,000 level and the $60,000 level of the weekend and so far price is looking soft to open the new trading week.
As it stands, price is under both levels and we can see that it is also making a series of lower highs. This is bearish price action, but what we do know is that we can’t write BTC off too quickly.
The first marker I am watching is the $55,000 level, which would signal a break of the prior swing low. $50,000 would be the next key level.
A break below, $44,000 is the one I’ve been waiting for for some time.
If price can reclaim $58,000 then that would be bullish. I am certainly not discounting another leg higher either. While I am fundamentally bearish, as traders we must respect the price action.
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