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BTC/USD Forecast: Bitcoin Continues to Struggle With $52,000

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.

Bitcoin experienced a slight decline during Thursday's trading session, struggling to break above the $52,000 mark. There's anticipation for a correction, potentially down to $47,500 where the 20-day EMA comes into play.

  • During the Thursday trading session, the price of bitcoin slightly declined at the $52,000 mark, which is, of course, a level at which many people have been keeping a careful eye on it.
  • In the end, I do believe that this market is ready for a slight correction, but it will almost certainly attract buyers during that correction.
  • Although it made an initial attempt to rise during Thursday's trading session, Bitcoin is still having trouble breaking beyond the $52,000 barrier.

Given that it has proven to be rather resistive on a weekly timescale, this area has naturally turned out to be fairly significant on longer term charts. It appears that we are merely circling about in circles while attempting to choose our next course of action. Right now, if we do drop from here, as it appears we might, I believe that with enough time, we might drop to the $47,500 level below, where the 20-day EMA will enter the picture.

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Runaway Market? Maybe.

In what is becoming something of a runaway market, this is an indication that I believe a lot of people will be watching. However, Bitcoin is probably free to reach $55,000 if we do reverse course and break over the $53,500 mark. In any case, Bitcoin is currently attempting to recover from this uncontrollably high run. Despite all of the hype around the Bitcoin ETF, I do think it's kind of interesting.

This is where it was recommended. Here, it was concluded. The point is that even though we've experienced so much volatility, we're only up roughly 8% on that. I believe that in the future, Bitcoin will become much less volatile, which is excellent for it as a real asset but bad for it as a speculative asset. You must remember that the market will undergo a significant shift. Wall Street is now involved in Bitcoin, making it everything that no one ever intended.

Bitcoin Forecast today 23/02 - Bitcoin Continues to Struggle With $52,000 (Chart)

With it, they can quickly and easily short the ETF. And as a result of these businesses having to enter the Bitcoin market and sell, the price will drop. Furthermore, as we've seen, it can result in enormous surges. Wall Street will then inevitably say, "Here, retail traders, hold my hand, hold my bag." Thus, that might also be a move. Given that, I believe you are in a position where you need to exercise caution and acknowledge that any dip may present a purchasing opportunity, but you are unable to take a whole risk. This is not the market to YOLO. I believe we move to $55,000 and then $60,000 if we break above the $53,500 mark. However, 2018 will be the year when everyone examines and acknowledges the changes made to Bitcoin.

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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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