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BTC/USD Forecast: Rising Despite Being Overbought

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 might see the $60,000 level enter the picture and provide support if we break below the $65,000 level

  • Thursday morning saw another surge in bitcoin prices as we continue to move higher.
  • That being said, given how overdone this market has been for so long, we should exercise some caution when pursuing it.

 BTC/USD Forecast Today 08/03: Rising but Overbought (Graph)

Bitcoin Rallies Early in the Session. Are We About to See Trouble?

As you can see, during the early hours of Thursday morning, the price of Bitcoin fluctuated. But to be honest, because of this, the market is a little overdone. I believe it will likely not be long before we witness buyers returning to the market to purchase it.

However, we've also been done a bit too much already. Furthermore, I believe that you do need to view this through the lens of an extremely stretched market. We might see the $60,000 level enter the picture and provide support if we break below the $65,000 level. The 20-day EMA and, eventually, the 50-day EMA come next.

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Having said that, we are getting close to all-time highs, so I believe the market is going to be extremely turbulent and noisy going forward. We're probably going to see a pretty ugly retreat sooner rather than later. Remember that the ETF has created a lot of momentum, but it is unclear if that is something you can hold onto because, quite honestly, there is only so much money that can be invested in these ETFs.

It goes without saying that some people have made 80% profit in a matter of weeks. Many institutional investors will accept that. So remember that not everyone is an enthusiast for cryptocurrencies. Having said that, I do believe that we deserve a good kick to the face. I'm not sure when it will occur, but I do know that if there is a significant sell-off of any kind, there will undoubtedly be buyers below who are prepared to pursue it and possibly look for some value.

At this point, you're most likely going to appear to be doing that. Over $70,000, it appears to be a fairly significant barrier. Of course, part of this excess froth will need to be worked off by the market at the very least.

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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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