Bitcoin Daily Forecast

BTC/USD

Bitcoin markets broke down again during the day on Monday after trying to rally over the weekend. We have broken down through the $4000 level yet again, and as you can see on the chart I have resistance marked at the $4500 level. I think at this point, bitcoin has proven itself to be something that you should sell every time it rallies, and I think also you can even make an argument for a bit of a bearish flag trying to form. If that’s the case, the bearish flag suggests a move to roughly $2000. I think at this point, the entire world knows that bitcoin is going to continue to struggle, so there’s no point in trying to fight the momentum. The $4000 level of course is a major round number that will attract a lot of attention, but obviously we are in a major downtrend.

Bitcoin continues to struggle to find any traction, and as the 50 day EMA shows on the chart, we are starting to rollover rather drastically from a longer-term standpoint again. In fact, it’s not until we break above there on a daily close that I would even remotely consider buying Bitcoin, and I think at the moment any time we rally there will be people willing to jump in and sell, if only to get some of their losses under control. While blockchain technology is certainly going to take off, it looks as if the crypto isn’t for any significant amount of time. Wall Street still can’t figure out what to do with this thing, which is probably the only hope of saving the market. Currently, institutional interest is there, but the infrastructure is in. If that changes, there may be an opportunity for Bitcoin to rally, but at that point it would be in the hands of Wall Street traders that will certainly inflate another bubble before a massive collapse. If you have the ability to trade Bitcoin in the CFD market, selling is by far the best way to go about.

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.