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Bitcoin Forex Signal: After a Striking Run, Bitcoin Stalls

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.

Potential signal: Any pullback at this point in time is a buying opportunity. This is a market that I would be interested in buying anywhere near the $65,000 level, and then again at the $60,000 level underneath. I believe this is STILL a buy and hold market.

  • After such a strong run in the last few weeks, Bitcoin appears to be struggling to catch its breath.
  • This makes sense and suggests that you may soon have the chance to purchase it at a discount.
  • This is the hope, at least, in these runaway markets that occur in this manner. Right now, chasing won't be the solution.

Bitcoin Signal Today - 13/03: Bitcoin Rally Pauses (Graph)

Bitcoin Market Could Be Setting Up an Opportunity

As you can see, trading in the Bitcoin markets on Tuesday was quite erratic and sideways. Not very shocking. Given how completely overdone this market is, you really do have to view it through the lens of a market that is in desperate need of a correction.

It's unclear if we see that, but it's obvious that you can't short the market right now. It's practically not possible to do that. It's important to view this as a market that is constantly striving to rise, but eventually someone has to make a move to take advantage of the situation and offer more supply. In my opinion, that will be the next step. Therefore, I believe that 65,000 below would be a very interesting place to exit this market. Another interesting place to go long is right above the $60,000 mark, where the 20-day EMA is currently located.

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I have no desire to pursue the market. Since it shot straight up in the air, it has been very difficult to watch. However, Murphy's law says that as soon as you buy at this price, it will rise for the next six months, meaning you will be sitting on dead money. Therefore, chasing never really pays off. It just comes down to waiting for the market to clear so you can get a better deal sooner rather than later. Remember that Wall Street invested a great deal of other people's money in the asset, and they will eventually reap the rewards. It is almost a given, given the kind of gains they have made in the last few weeks. Thus, exercise caution while considering that as a possible opportunity.

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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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