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BTC/USD Forecast: Buyers on Each Dip

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.
  • In my daily Bitcoin analysis, I have to admit that I am focusing on the $67,000 level, an area that's been important more than once.
  • When I look at the bigger picture, it's obvious that the 50% Fibonacci retracement level from the post Wall Street ETF announcement has held quite true as support near the $56,500 level, and since then, we've really taken off to the upside.

On the other hand, if we take off from here, the $68,500 level gets in the way. But anything above that more likely than not, will open up a move to the previous swing high near the $73,000 level. It's probably worth noting that the US dollar is on the back foot a little bit during the session. With PMI numbers around the world being a bit mixed, that suggests that we will continue to see a lot of dovish behavior coming out of central banks.

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Central Banks Could Help BTC

If that's going to be the case, then that should help Bitcoin, because that's exactly why it was built. It was built as a way to avoid money printing and more likely than not, loose monetary policy is going to have people thinking along those lines on a breakout above the $73,000 level. I think Bitcoin is free to go much higher, perhaps as high as $85,000 based upon a bit of a moving, average, slant to the upside.

BTC/USD Forecast Today 25/7: Buyers on Each Dip (graph)

The fact that it is a measured move from the previous consolidation. Either way, I don't see anything on this chart that tells me I should be a seller. So therefore dips, I do believe, continue to be buying opportunities in this market, although you will need to recognize that this is a market that will be noisy. After all, this is a market that is completely full of noise, but there are a lot of chances for this market to punish you if you are far too overstretched as far as position sizing.

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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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