While Bitcoin has been trading well - now at all-time highs - Ethereum, Dogecoin and others have been trading well too.
Ethereum also hit new all-time highs on Wednesday, which is not too surprising based on the charts and the role it’s playing in the NFT market.
So will the public debut of Coinbase drive Bitcoin and its crypto peers higher or will it generate a “sell-the-news” reaction?
It’s almost as if the pause in Bitcoin is a reflection of investors waiting for the Coinbase debut.
The cryptocurrency ran to new highs as enthusiasm grew ahead of the event, but inched back down from those highs as Coinbase took longer and longer to finally open.
Now that it has finally started trading, perhaps it will allow Bitcoin to regain some momentum as well.
If that’s the case, I want to see if the cryptocurrency can push up to the $67,500 area.
There it will find the 161.8% extension from the February correction. Above that and the two-times range extension could be in play near $73,500.
On the downside, the layout is actually pretty simple. Should we get a “sell-the-news” reaction to the Coinbase debut, it may last a few hours or a few days. It could even mark a longer-term top, although that doesn’t seem like it's the case (at least presently).
The $60,190 level has been clear resistance for Bitcoin over the last month. On a dip, investors want to see this level hold as support, along with the 10-day moving average.
If that scenario were to play out, it would be a reasonable buy-the-dip spot for traders.
A close below $60,000 could put the 50-day and 10-week moving averages back in play. Both measures have been notable support amid the longer term trend. Look for that to remain the case going forward.
For now, Bitcoin is very much in a bullish trend, as the buy-the-dip principle is in play. When the trend changes, so will our approach.