Bitcoin Daily Forecast

BTC/USD

The bitcoin market pulled back slightly during the trading session on Tuesday but did find buyers at the bottom of the range, showing signs of resiliency considering that the range was so tight. As you can see on the chart, I have an ellipse drawn out showing just where the market is bouncing around right now. I believe that what we are looking at is a scenario where we just simply cannot take off quite yet, but also could start to see a bit of consolidation. That consolidation is actually a very positive thing for the buyers based upon what has happened as of late.

Bitcoin has recently been consolidating and that of course has a massive shot higher that we all know about now, but is also consolidating around the $5000 level, which of course will attract a lot of attention. With that in mind, it makes sense that we may have to go back and forth in this region to build up momentum and continue the next leg higher. We simply need more buyers to come in on these dips and the market to become “comfortable” in this area in order to continue the upside momentum.

To the upside, if we can break out above the $5300 level, then I think we’re going to go looking towards the $5500, and then possibly even the $6000 level after that. The 200 day EMA attracts a lot of attention as per usual, so don’t be surprised if the market continues to see a lot of choppiness in the short term but longer term this does look like a very bullish move, and I don’t have any interest in shorting Bitcoin at the moment, something that I haven’t been able to save for a very long time.

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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.