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BTC/USD Forecast: Consolidate in the Same Range

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 has been fairly negative during the trading session, but it looks like we are still hanging around the $67,000 level for support.
  • In other words, despite the fact that we have sold off, I don't know that much has changed.
  • We just continue to go sideways as the market churns.

This is a market that now has become basically an index as interest in the market has had institutions piling in and now, they don't really have a whole lot to do. I think this becomes more or less like the S&P 500 where it will have a proclivity to go higher but that doesn't necessarily mean that we're going to see massive moves. Long gone are the days of Bitcoin making 10% in a session without some type of major catalyst.

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Slow and steady market

So, with that being the case, I think you have to look at this more or less as a slow and steady market. If we were to break down below the $66,000 level, it could open up a move down to the $60,000 level after that. That's an area that I expect to see a massive amount of support. If we break higher and clear the $73,000 level, then we could go looking to the $75,000 level and then eventually 80,000, which I think is probably the most likely of outcomes.

BTC/USD Forecast Today 03/06: Consolidate in Range (graph)

In the meantime, you have to expect a lot of noisy choppy volatility, but really that's been the case for three months now and I just don't see how that changes anytime soon. Either way, I have no interest in shorting BTC/USD despite the fact that it's not exactly exhibiting a lot of upward momentum.

Because of the lack of momentum, I think bitcoin is going to become like any other asset, just simply part of your portfolio, and not some type of “Yolo trade.” All of the big money has already been made in bitcoin, and now it just becomes like anything else that Wall Street handles.

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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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