BTC/USD Forecast: Bitcoin Pulls Back Again
Date
8/17/2022 2:29:09 PM
(MENAFN- Daily Forex)
- The BTC/USD currency pair pulled back a bit on Tuesday as we continue to see bitcoin pullback from the crucial $25,000 level the $25,000 level.
- Bitcoin has been rather resilient as far as selling pressure is concerned, but at the end of the day, I think we got a scenario where a pullback was necessary.
- The $22,500 level underneath is significant support, so it is possible that could be where we are aiming to get to.
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If we were to turn around a break above the $25,000 level, that would obviously be a very bullish sign because we would be clear in an area that has already shown itself to be supportive previously and resistant now. The market breaking above that level also breaks above the top of a shooting star, which is also a very bullish sign as well.Hoping for Hawkish Monetary Policy
Keep in mind that there's a lot of speculation as to what the Federal Reserve is going to do and what monetary policy is going to be like going forward. If they do in fact have to become a little bit less hawkish, that is good for Bitcoin because it means that risk appetite will return. Remember, Bitcoin is about as far out on the risk appetite spectrum as you can get, so you will need to have other risk appetite-related markets rising as well.
The market could also be one of the first places money comes flying out of it we have issues with risk appetite and see things like stocks get hammered. In fact, it's worth noting that the correlation between stocks in the United States and Bitcoin has been very strong over the last year or so, and because of this you need to be cognizant of what's going on in those markets as well.
You should also probably pay close attention to the bond market in the United States right along with the US dollar because yields and the greenback work in direct competition with the Bitcoin market, which is now a much more mature market than it had been previously. There are a lot of institutional players in these markets now, so they will behave more like traditional assets. Gone are the days of 15% gains, as institutional players don't like that type of noise. The good part of that is also 15% losses are probably gone as well.
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