- During the trading session on Wednesday, we saw bitcoin find support yet again at the $75,000 level, a number that is a large, round, psychologically significant figure, and an area that has been important multiple times in the past.
- All things being equal, this is a market that I think given enough time will eventually have to determine whether or not this is real support.
- At this point, markets will continue to see this as a major indication of where we are going.
Technical Analysis
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The technical analysis shows that there is a lot of support in this area, because “market memory” comes into the picture as it was previous resistance. Ultimately, I think this is a situation where traders are trying to come in and pick up “cheap Bitcoin”, but at the end of the day the market has been beaten down rather significantly, so you have to be cautious jumping into the market with massive positions.
That being said, I have been dollar cost averaging along the way, so obviously I’ve lost some money, but I’ve been doing it in small positions in small increments, so I don’t care. What I’m looking for is some type of momentum to get going to the upside. Remember, this is a market that desperately needs some type of risk appetite in the overall markets to get moving. Ultimately, I think this is a situation where traders are going to be looking for some type of headline that suggests the risk appetite should pick up again. In other words, the market is likely to continue seeing a lot of volatile moves until we get some type of clarity when it comes to the overall direction of how the trade tariffs are going to progress, and as things stand right now, it looks like most things related to risk appetite are going to be decimated. As long as that’s the case, Bitcoin will struggle to find any real upward momentum.
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