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BTC/USD Forecast: Bitcoin Rallies Significantly on Friday

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.
  • During my analysis of Bitcoin, the first thing that comes to the forefront is the fact that Bitcoin is rallying rather significantly, as we have broken through a significant short-term swing high, and now that we are above there, it looks like Bitcoin could continue to go looking to the upside.
  • After all, the market had been in a major consolidation range, and now it looks like Bitcoin might go looking to get to the top of it.

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Technical Analysis

The technical analysis for this pair is somewhat sideways at this point in time, but at this point in time it certainly looks as if the market favors the upside in general. The $90,000 level underneath was a major support level, while the $110,000 level is a major resistance barrier. All things being equal, this is a market that will continue to be noisy, but given enough time, I would finally expect this market to go to the upside and breakout, but the question is what will cause it to happen? After all, the Trump administration is already known to be pro crypto, but now we have to see them actually do something to really get the markets moving.

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It’s also worth noting that the market had gone sideways for a while due to the fact that we had exploded to the upside, and with that being said I think we’ve got work off some of the noisy behavior that had previously been such a prominent part of this market. Nonetheless, I think this is a scenario where traders will continue to buy each and every dip, because it offers value that you can take advantage of. I have no interest in shorting Bitcoin, and quite frankly I think that the range holds as long as we can stay above the crucial $88,000 level, as the $90,000 level is essentially a “range of support.”

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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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