Bitcoin Daily Forecast - 8 May 2019

Christopher Lewis

Bitcoin markets rallied again during the trading session on Tuesday, reaching towards the crucial $6000 handle. This is an area that I have been talking about for some time, because it was so important in the past. So at this point, I suspect that we are in a bit of danger when it comes to the short-term uptrend. This makes a lot of sense, because we have been so relentless to the upside.

That being said, this is an area that should be a lot of trouble, as it was so massive as far support is concerned. The fact that we have rallied like this means that we are probably due for a pullback, because not only is it a large, round, psychologically significant figure, but it is also the top of a rising channel. Overall, I think that we probably will pull back from here but it should end up being a buying opportunity over the longer-term.

Ultimately, I believe that the $5000 level will now offer a bit of a “floor” in the market. However, I think that it is going to take several attempts to break above the $6000 level decidedly. This is a major level in the marketplace, because quite frankly if we break above here we could start to go much higher. Keep in mind that a lot of people have been in Bitcoin for over a year and are completely underwater. Those people will be looking to sell at higher levels to get out without major losses. It is because of this that I do not expect the speed of the rally to come anywhere close to what we had seen during the last bubble. As you know, I am not a true believer in Bitcoin, but what I do believe in is what I see. What I see now is a market that will eventually try to break out to the upside. I have no interest in selling.

btc

About the Author
Christopher Lewis

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.

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