- Bitcoin continues to just meander during the trading session here on Wednesday as the $110,000 level continues to be a major large round psychologically significant figure, an area that previously had been massive resistance.
- So, it does make a certain amount of sense that it could be support based on market memory.
- We'll just have to wait and see. But ultimately, and I think you have to look at this as a market that has done everything it can to break to the upside but just ran out of momentum.
Now, that being said, you should also keep in mind that we are in a time of year where a lot of institutional traders are actually on vacation, and therefore a lot of the institutional volume is gone. In the last couple of days we have seen an attempt to bounce from the $110,000 level, so I think that's a good sign. We'll just have to wait and see how that plays out over the longer term.
I’m Still a Buyer Overall
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I'm still bullish about Bitcoin and I think institutions are as well. There's a lot of attention being paid to Jerome Powell and the idea of loose monetary policy, but there's also concerns that it may not look Bitcoin like it has in the past because people might be afraid of what's going on in the economy. So, there is a lot of noise right now though.
It looks like $110,000 is your short term floor with potentially a move towards a 50 day EMA in the cards, which is right around $114,000 above there. Then we could go looking at the $120,000 level. If we were to break down, I would look to reset somewhere near the 200 day EMA, which is currently residing just under the $104,000 level.
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