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Bitcoin Forecast: Trying to Bounce Again

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.
  • I recognize that bitcoin has been building up a bit of support just above the $60,000 level.
  • With this, I believe that the market is more likely than not in the midst of trying to pick up momentum to the upside.

Bitcoin Forecast Today - 02/07: Trying to Bounce (Chart)

BTC/USD

Bitcoin continues to rally against the US dollar overall, but at the end of the day, it’s probably worth noting that the market is simply bouncing from a major support level in the form of the $60,000 level. The $60,000 level is an area that I think a lot of people will be cognizant of, because it has been so important multiple times. The fact that we have bounced from there makes quite a bit of sense, and therefore I think it’s likely that bitcoin will go looking to attack the 50-Day EMA above. After that, then the $67,000 level is the next target that I think a lot of people will be looking at.

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On the downside, bitcoin price could break down below the $60,000 level and put a lot of pressure in the market, but it’s not until we break down below the $58,000 level that I think the market breaks down significantly. At that point, we could see an attempt to get back down to the $51,000 level, and then of course the $50,000 level after that.

Keep in mind that bitcoin is now a Wall Street asset, and therefore it’s not the same thing it once was. In other words, this is a market that is going to simply cause a lot of boredom in “bitcoin bros” in their approach to the market. The market is going to behave more like an index as institutional traders have no interest whatsoever in trying to see an asset move 10% every day. With this, I think this is a market that will probably continue to be noisy, but it will be more of a grind to the upside overall as Wall Street continues to sell the idea of owning bitcoin to the average investor.

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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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