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BTC/USD Forecast: Bitcoin Exposed to the Outside Again

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

We may have finally seen the bottom, but the next couple of days could be very noisy.

  • The Bitcoin market took off to the upside, showing signs of positivity yet again, and at this point it’s likely that we continue to see a lot of buying pressure underneath.
  • The $25,000 level is a large, round, psychologically significant figure, and therefore I think a lot of people will be paying close attention to it.
  • The market is going to continue to see this as a major barrier, so if we can break above there, then it’s likely that we could really start to take off at that point.

Bitcoin Risky Asset

Alternatively, I think you got the situation where we are getting close to seeing a major takeoff and breakout in this market. If Bitcoin does take off, then it’s likely that we see the market go much higher, perhaps trying to reach the $30,000 level which would be the next major target. Alternatively, this is a situation where you should see a lot of fighting in that area. A break above the $30,000 level would be a very bullish sign.

Keep in mind that Bitcoin needs a significant amount of risk appetite out there, because it is such a risky asset itself. After all, it’s about as far out on the risk spectrum as you can get, so you would need to see traders be willing to go all in on some of these assets. It’s also worth paying quite a bit of attention to the Bitcoin market, due to the fact that it is so far out on the risk spectrum. With that being said, I think the market continues to see a lot of volatility down the road, so I would be cautious this weekend. If we break down below the $23,000 level, we would more likely than not go testing the 200-Day EMA, which sits right around the $21,000 level. Breaking down below the $20,000 level would be extraordinarily negative, and therefore could send this market much lower going forward, therefore I think you’ve got a situation where you would have to be very careful. That being said, right now it looks like we are still seeing quite a bit of bullish pressure and not only Bitcoin, but other cryptocurrency’s as well. We may have finally seen the bottom, but the next couple of days could be very noisy.

BTC/USD chart

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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