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BTC/USD Forecast: Bitcoin Falls from Familiar Level

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 analysis of Bitcoin, I feel like I am stuck in the movie “Groundhog Day.”
  • For those of you not familiar, it’s essentially a movie where the protagonists wakes up in the same day over and over. In other words, he is really just living through a 24 hour timeframe.
  • The same things happen time and time again, which is a good way to describe Bitcoin at the moment.

BTC/USD Forecast Today - 10/12: Bitcoin Drops (Chart)

That being said, I don’t think this is a market that’s ready to give up its bullish behavior, and on dips, we continue to see traders come in and buy Bitcoin. I think that will continue to be the case, but I also recognize that a pullback would not necessarily be the worst thing ever. There is obviously a lot of demand for Bitcoin at the moment, and there’s obviously a lot of people out there that are true believers.

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As long as that’s the case, and of course the fact that Wall Street has its new shiny ETF, I think there is a bit of a floor in this market. I don’t know where the floor is at the moment, because now it has become more institutionalized it won’t rely on technical analysis like it once did. After all, technical analysis tends to be the purview of retail traders, and while institutions do use it, they approach it from a “top-down framework” starting with fundamentals.

However, there are Levels I am Watching

That being said, I’d be very interested in a dip to the $90,000 level. The 50 Day EMA comes into the picture that point, and I think a lot of people would be interested in picking up Bitcoin at a “10% discount.” While this is now an institutional asset, and we probably won’t experience massive volatility anymore, a 10% discount would not be out of order here, nor would it change anything.

In fact, I’d really like to see a drop to the $80,000 level, but the question then becomes whether or not everybody gets what they want? As things stand right now, there seems to be plenty of interest, and I think it’s simply a matter of whether or not we can break above the $104,000 region to get more “FOMO.” We may just simply be working off froth, which is similar to what we did earlier this year so people could collect more.

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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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