Bitcoin Daily Forecast

BTC/USD

Bitcoin broke down significantly during the trading session on Monday, slicing through the $4000 level. This market has come undone rather significantly as of late, but we did get a nice bounce towards the end of the day. I think this is essentially a bit of a “dead cat bounce” though, and we will see sellers jump into this market at the first signs of trouble. I believe that the $4000 level will of course have a lot of influence on what happens next, but even if we do break above there I can see several resistance levels above.

I think at this point, the $4500 level is the first major resistance barrier above the $4000 handle, and then we will find plenty of sellers near the $5000 level. At the first signs of an exhaustive candle on a short-term chart, perhaps even on the hourly chart, you will see traders dumping Bitcoin rather quickly. This is a market that has broken down drastically, and the fact that we have pierced below the $4000 level shows just how dire things have become.

People are starting to question whether or not bitcoin will ever fully be adopted, and quite frankly I don’t think it’s going to considering how much we have seen in a drop-off of transactions over the last several months. This has been one of those markets that there is always a reason to believe later, but those reasons continue to fail, or perhaps simply just don’t present themselves in reality. At this point, I have no interest in buying bitcoin at all, but if we did break above the $6000 level, one would have to stand up and take notice. That’s a 50% gain from here though, so it’s very difficult to imagine that.

Btcusd

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.