BTC/USD Forecast:Continues To Trade In A Tight Range
Date
8/25/2022 4:08:18 AM
(MENAFN- Daily Forex)
- The BTC/USD continues to go back and forth during the trading session on Wednesday as we continue to hang around the $21,500 level.
- The market is likely to continue to see a bit of hesitation, and ironically enough, I think that Cryptocurrency is waiting to see what central banks are going to do.
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This is the exact opposite of what crypto is supposed to be doing because when everybody gets excited about Bitcoin, it was supposed to be a way to break away from central banks. However, the institutions have entered the marketplace, and therefore it does make quite a bit of sense that we will continue to see Bitcoin behave more like a traditional asset. Bitcoin is pretty far out on the wrist spectrum, so we need to see risk appetite rally in order to make a bigger move. Market Likely to See Resistance
Looking at the start, I think it is worth noting that the 50 Day EMA is just above and dropping. In other words, the market is likely to see resistance above anyway. Furthermore, the $24,000 level is going to continue to be important, right along with the $25,000 level. If we can break above all of that, then we will test the next consolidation area that starts at the $28,000 level. If we can break above the 200-Day EMA, it is likely that we could continue to go much higher in a longer-term“buy-and-hold” type of situation.
The $20,000 level underneath being broken to the downside would open up the possibility of further selling, perhaps opening up a move down to the $12,000 level. The $12,000 level is where we started this bullish run to begin with, so I do think that there will be a lot of interest in buying Bitcoin in that region if we were to get down there. I would certainly be willing to jump in and start buying and building up a bigger position in that general vicinity. That being said, we are waiting to see what Jerome Powell says during the Jackson Hole symposium to give us a bit of a“heads up” as to what the Federal Reserve is going to do going forward. Quite frankly, Bitcoin needs to see monetary policy loosen up a bit to really get going to the upside.
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