BTC/USD Forecast: Bitcoin Gives Back Gains

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If you are longer-term, you probably have a nice opportunity to pick up Bitcoin at lower levels.

  • Bitcoin markets initially tried to rally during the trading session on Thursday but then gave back gain.
  • The market should pay close attention to the $24,000 level above, as it is a large, round, psychologically significant figure.
  • The 50 Day EMA underneath offers quite a bit of support and is starting to curl higher, so I think that given enough time it’s difficult to imagine that there won’t be at least some type of technical support there.
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Bitcoin Breakdown & Breakout Scenarios

If we break down below the $20,000 level, then we could see the bottom fall out of Bitcoin, perhaps opening up a move down to the $12,000 level. Somewhere near the $12,000 level would be an area where you would anticipate seeing a significant amount of market never come into place as it is an area that kicked off the most recent bullish market. By breaking above the top of the $12,000 level, we saw a lot of people go to the upside. On the other hand, when we come back down there somebody you more likely than not be willing to support the market based upon “market memory.”

A break above the $24,000 level, will open up the possibility of a move to the $20,000 level. The $20,000 level extends all the way to the $32,000 level, which is a massive barrier for the next uptrend to overcome. Ultimately, I think this is a situation where we continue to see more negativity, especially as we continue to see so much in way of uncertainty economically. The uncertainty leads to a lack of risk appetite, which is a major detriment to cryptocurrency in general.

Bitcoin will be the first place that money goes to, but ultimately it is going to be sensitive to risk appetite, so once we see Bitcoin turnaround, you may see some of the other markets follow along. It is because of this that even if you are not trading Bitcoin yourself, it is worth paying attention to if you buy anything crypto-related. As things stand right now, we are more likely than not going to continue to see a lot of sideways behavior, and therefore it’s likely to see more of a range-bound type of trading system employed if you are more or less a short-term trader. If you are longer-term, you probably have a nice opportunity to pick up Bitcoin at lower levels.

Bitcoin chart

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