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Bitcoin Forecast: Bitcoin Looks Lost

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 can see that we still have no idea what to do with this so-called asset at this point in time.
  • Nobody really knows what Bitcoin is, nor whether or not it's going to ever be used for anything.
  • The markets have been rocked by the CPI numbers coming out weaker than anticipated in the United States, which has people believing the perhaps the Federal Reserve might start cutting rates.

The traditional thinking is that the Federal Reserve cutting rates would be good for Bitcoin because it's supposed to be a store of value. But I'm also old enough to remember when Bitcoin was digital gold. It was a new payment paradigm. It was going to be the world's reserve currency, and on and on. Bitcoin is a perfect example of what Wall Street does.

Bitcoin is an ETF

Bitcoin Forecast Today - 12/07: Looks Lost (Chart)

They created an ETF, and we shot straight up in the air 92% and they basically did the whole thing of selling this to the public, making their commission and then dumping it off. Whether or not that continues to be the case remains to be seen but one thing is for sure, this is a market that doesn't seemingly have any momentum one way or the other for a minute there and look like we were going to break out over the course of the last couple of days.

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From a BTC/USD forecast point of view, it looks like the $60,000 level is the ceiling. If we were to close above there on a daily close, then guess I would be bullish, at least for the short term but Bitcoin has already proven itself not to be trustworthy, as it just simply doesn't seem to be able to hang on to any movement other than the occasional pump and dump.

If we were to break down below the $54,000 level, I think that opens up the possibility of a move down to $51,000 or so, and anything below there will probably destroy the trend. The attempt to rally over the last couple of days has been somewhat feckless. We'll have to see whether or not they can continue to push. And I would say from a technical analysis standpoint, if we could break above the $60,000 level after failing two days in a row, that would be extraordinarily bullish.

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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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