BTC/USD Forecast: Bitcoin Continues to Correct

• Bitcoin is found on the back foot again on Friday, as we continue to see a bit of a correction in this market.
• That does make a certain amount of sense, considering that we shot straight up in the air for about a 90% return over the course of just a couple of months.
• With that being the case, the market desperately needed some type of correction, and that is exactly what we are going through.
• You need to flesh out a lot of the “hot money” to have a trend continue.

Short-term pullbacks should end up being buying opportunities, and I think the $60,000 level underneath is going to be a situation that you need to pay close attention to. The $60,000 level is a large, round, psychologically significant figure that a lot of people will be paying attention to, right along with the 50-Day EMA racing toward it again. With this, I think there are plenty of buyers underneath just waiting to get involved.

ETF Inflows Halt

The new exchange traded fund for bitcoin obviously brought in a lot of inflow, and therefore it’s likely that the market will continue to see a lot of buyers, and with that being the case, I think you have a situation where we will have a more normalized market, but longer term I think every time that this market pulls back, there will be people looking to get involved. That being said, we will not get a 90% return in the next 2 months, and now that the ETF is part of the market, we will probably see bitcoin act more or less like a normal ETF or index market.

Underneath, the $52,000 level is a major support level, and I think as long as we can stay above there, then it’s likely that we are still going to see plenty of buyers. If we break down below the $50,000 level, that will be the end of the bullish run for bitcoin. It will be interesting to see what the market behaves like now that we have the ETF, but I think now that so many institutions are involved, it’s likely that we will continue to see a more normalized and stable market.

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