Bitcoin Daily Forecast

Bitcoin markets had a very strong session during trading on Friday, after the jobs number came out, and there was a general “risk on” feeling around the world. With that being the case, the market gained over 4%, slamming into the top of the channel we have been trading in. Quite frankly, we got here a little quicker than we anticipated, so this point a pullback would make some sense. The market pulling back though should attract a lot of value investors, as the market has clearly shown its proclivity to go higher. Ultimately, it’s now obvious that we have formed a bit of a bottom, so I believe that we are starting to get more traders in the marketplace feeling as if they need to get involved.

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Any pullback at this point should be thought of as value, because not only do we have the obvious channel, but we also have the $5000 level underneath which of course should show a certain amount of support, because of the large, round, psychologically significant figure. Beyond that, we also have the 200 day EMA which of course attract a lot of longer-term money into the marketplace.

That being said, the $6000 level above will continue to be a bit of an issue, so don’t expect this market to suddenly collapse due to that level. I think we will have to bounce off the $6000 level several times, as it will take a significant amount of momentum to finally break out above that level. It was massive support under the previous consolidation area as you can see on the longer-term charts. If we do break above that level, then the markets will enter a whole new phase of bullishness. As things stand now though, look for pullbacks to offer value.

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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.