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BTC/USD Forecast: Bitcoin Struggles for Momentum Amid Fed Policy

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.
  • The Bitcoin market has rallied a bit during the course of the trading session on Wednesday, but as you can see, we have given back quite a bit of momentum at this point.
  • It's not a huge surprise because the Federal Reserve had a reasonably hockey statement.
  • Most of the people that are surprised are going to be retail traders that don't understand that Bitcoin is now a Wall Street asset.

It doesn't matter what you think it is, the reality is that interest rate policy will have a major influence. So, what lifts Bitcoin at this point? I think that's going to have more to do with US government policy. Again, I know it's supposed to be decentralized, but it's very much not decentralized in the sense that what's going to move it is adoption. How does it get adopted?

Well, you need the US government to make it easier for people to use it as far as regulations are concerned. That's actually been the play for most of the last, say year and a half or so, when our initial move higher was based on the ETF, and then we had another move higher based on the election of Donald Trump and a pro crypto administration. The problem is they haven't done anything yet, so I think that's what the market's waiting for.

BTC/USD Forecast Today 30/01: Struggles for Momentum (graph)

Buying Opportunities

Short-term pullbacks should continue to be buying opportunities, and the $100,000 level should continue to matter. Underneath there you have the 50-day EMA, and then you have $90,000 underneath there, where I think you definitely have quite a few people waiting to add to their position. This to me looks like accumulation. I don't think Bitcoin's going anywhere. I just don't think it's the same asset it was three years ago. So as a retail trader, you need to learn about interest rates, because that will have an effect on this market. That being said, I remain positive.

Ready to trade Bitcoin forex forecast? Here’s a list of some of the best crypto brokers to check out.

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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