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BTC/USD Forecast: Bitcoin Continues to See Volatility During Holiday Session

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.
  • Bitcoin has been all over the place during the trading session on Monday, which does make a certain amount of sense considering that the Americans weren't in the picture, so liquidity might've been an issue. But keep in mind that Trump taking office has a lot of people excited as he's very pro-crypto, at least in the last few years, and that could help, perhaps, get some legislation.
  • That's the real question. What will the Americans do at this point with Bitcoin and other cryptocurrency markets and what will they do as far as legislation? Bitcoin reached towards the $110,000 level early in the session but has turned around to sell off quite a bit of those gains. Nonetheless, we have also found plenty of support at the $100,000 level.

Building Momentum

So, I think you've got a situation here where we are just doing what we can to break out of this range. And while we are not there yet, I think we are building that pressure. Short-term pullback should continue to attract a certain amount of buying pressure because quite frankly, everybody knows Bitcoin is in an uptrend and nobody's really willing to short this market. Whether you believe in Bitcoin or not, there are some things that just aren't worth fighting. And I think that's kind of where we're at now.

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Keep in mind that the ETF of course has sent the market flying and the Trump election has done the same thing. So, we do have to work off some of this exuberance, but clearly every time this market dips, there seems to be plenty of people out there willing to get involved all the way down to at least the $90,000 level. So, with that, I am optimistic about any pullback that sooner or later the buyers come back and get involved. If we can break above the $110,000 level, then I think we can really start to take off to the upside.
My name is Chris Lewis.

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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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