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BTC/USD Forecast: Struggling with Momentum

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 gone back and forth during the course of the trading session on Friday, as we continue to see a lot of questions asked about where we go next.
  • It does make a certain amount of sense that we would see that we just don't know what to do with ourselves as the Trump administration, although pro crypto, hasn't done anything yet. That's not a huge surprise. I can't imagine crypto is their number one priority, nor should it be.
  • So, with that being said, I think the market's just waiting around to see if there is any crypto legislation that comes through the pipeline that can make life easier for Bitcoin holders.

Has Trading Bitcoin Changed?

I do think that we are entering a new phase of trading in Bitcoin anyway, because the last two moves have been purely fundamental and not technical. That's not a huge surprise because institutions are now involved. The first move was the introduction of the Bitcoin ETF on Wall Street, which obviously is an institutional move as they jumped in. And then we sat there for about seven months.

BTC/USD Forecast Today 17/2: Struggling with Momentum (Graph)

The next move was the election of Donald Trump because he's knowingly spouting about being pro crypto. So now Wall Street and the institutional traders who are the ones who are moving this market are waiting around to see if he's actually going to do anything. If he doesn't, that could be very bad news for Bitcoin. I do think he does something, but the question is how much or how long will it take, that kind of thing. In the meantime, I think we're in a very tight range of about $20,000 and we'll probably continue to be for the foreseeable future with $90,000 underneath being support and $110,000 above being resistance. As things stand right now, we're just a bit under fair value.

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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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