BTC/USD Forecast: Bitcoin Looks Likely to Pull Back

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The bitcoin markets have initially rally during the trading session on Tuesday but pulled back to form a bit of a shooting star. That being said, the market is likely to find plenty of support underneath, especially near the 200 day EMA which is currently at the $3100 level. The 50 day EMA is starting to cross above it, looking very likely to form the so-called “golden cross. What’s even more interesting is that we had broken above the downtrend line, thereby showing a bit of a trend change. Ultimately, the $9000 level does look like it’s going to offer a bit of resistance, so if we were to pull back from here, it would make sense that we may fall towards the $8000 level. However, there is also the possibility that we turn in the other direction, and a break above the top of the shooting star from the trading session on Tuesday would be a bullish sign.

That bullish sign and could allow the market to go looking towards the $10,000 level, which of course is a large, round, psychologically significant figure, and of course will attract a significant amount of attention, not only because of the large round figure, but also the fact that we have seen a lot of noise in this area as well.

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That being said, if we were to clear the $10,000 level then it’s obvious that we will continue to go much higher. If we fail at the $10,000 level, at that point we will have to take a look yet again, as the directional bias of the pair could be in question. Looking at the chart though, it looks as if in the short term could be a pullback just waiting to happen as we try to build up enough momentum to go higher. If we break down below the $8000 level, then the market probably drop down to the $7000 level and possibly even the $6500 level underneath. Ultimately, this is a market that has seen a lot of bullish pressure until the session on Tuesday, and at this point we have to wonder whether or not it’s going to end up being a “double top.” The next 24 hours could be crucial, especially considering that the FOMC Statement comes out later on Wednesday, and will have a major influence on the US dollar which of course is the other side of this marketplace.

BTC/USD

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.