Bitcoin Daily Forecast - 16 May 2019


Bitcoin markets rallied again during the trading session on Wednesday, but at this point we are getting away overextended. Granted, we formed a massive shooting star during the day on Tuesday, and breaking above that is a very bullish sign, but at this point we have gotten so far ahead of ourselves that it is more than likely going to have a significant correction. It’s very possible that we may see an extreme fall in the short term.

Don’t get me wrong, I don’t think that Bitcoin is suddenly going to collapse like it did at the peak, but we have clearly gotten ahead of ourselves. I would look at bitcoin and something that you can by on the dips, because it will give you the ability to pick up a little bit of value. I believe that the $6000 level underneath is a significant support level just waiting to happen, so as long as we can stay above there I feel pretty good about the market.

Near the $5300 level, we have the 50 day EMA breaking above the 200 day EMA, which of course is what is known as a “golden cross.” That means that longer-term traders may be looking to buy. The $5000 level underneath is massive support, as it is a psychologically important figure as well. Quite frankly, if we go down below the $5000 level, this market will probably collapse. I put that at about a 15% probability, but it is something that we should be aware of.

Great trade opportunities are waiting - don't wait to profit from this pair!

If we do break out above the $8300 level, I would be very cautious about buying or even adding to a position. One would have to think that sooner or later serious pain could be felt. In the short term, I would welcome pullbacks and by bounces as they appear.


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.