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BTC/USD Forecast: Downward Pressures

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 fell rather hard during the trading session on Tuesday, as we are now below the crucial $65,000 level as I record the video.
  • Breaking the back of the hammer from the previous session isn't exactly the most positive sign, so I do think that we will continue to drop from here.
  • It certainly looks as if the market is a bit “heavy”, but that doesn’t necessarily mean that it is going to melt down anytime soon.

There has been a significant amount of downward pressure and it's probably worth noting that the moving average convergence divergence indicator has crossed the zero line over the last couple of days. This suggests that we do have further downward pressure just waiting to happen. And I think at this point, we may go looking to the bottom of the overall consolidation range. That means we could drop as low as $60,000, which is an area we had bounced from previously.

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If We Continue to Fall…

BTC/USD Forecast Today 19/6: Downward Pressures (graph)

If we were to break down below that, it would be a rather significant turn of events. But right now, I think we have a situation where Bitcoin is just looking for some type of clarity. This is a market that I think will continue to see a lot of noise. But keep in mind, we had risen 92% in just six weeks previously. So, it's not a huge surprise to see that the market has struggled to find its footing and decide to go in one direction or the other. We have been bouncing around between the $60,000 level on the bottom and $73,000 on the top. The $67,000 level has been important as well, so if we do bounce, I suspect that is a potential target. But right now, I think we probably see a little bit more of a drift to the downside. Nothing toxic, nothing fatal, but just a bit of a drift.

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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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