BTC/USD Forecast: Bitcoin Looks Likely to Pull Back


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.


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.