- The Bitcoin market has fallen pretty significantly during the trading session here on Friday, as we are now below the $110,000 level again.
- This is not a good look, although I’m not necessarily looking at this through the prism of shorting yet, but this is not good.
- A lack of volume certainly doesn't help, and if we break down from here, we could go looking for the 200 day EMA near the $104,000 level.
Anything below there opens up a bigger drop toward the $100,000 level, which of course would be a previous support level and an area that I think a lot of people suddenly get interested in. The biggest problem is of course that the overall risk appetite right now is just not good.
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So, with that being said, I think you have to look at this as a market that you need to see pick up a little bit of momentum to the upside before you start buying. I don't know if I would short it, but I certainly wouldn't be piling in right here considering that we have returned to this level yet again. Longer term, I do think Bitcoin not only comes back to the $120,000 level, but it probably goes much higher than that.
But in the short term, I think we've got a situation where you are just waiting to see some type of V pattern, if you will, that you can start buying. So, with that being said, this is a market that has not given you that signal yet. So, a little bit of patience probably goes a long way.
Keep in mind that the NASDAQ 100 and Bitcoin tend to move in the same overall direction, and with that being the case, you have to recognize that we're in an environment right now where everybody seems to be running for cover. And as long as that's the case, I don't think Bitcoin does well.
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