(MENAFN- Daily Forex)
- Bitcoin markets rallied a bit during the trading session on Wednesday as we continue to look at the $18,000 level is a significant support area. If we can see above the $80,000 level, there is a chance that we grind sideways and perhaps kill off even more time.
- Keep in mind that the BTC/USD is far out on the risk spectrum, so you would need to see a major turnaround in risk appetite deceived Bitcoin take off.
- I do not expect to see that anytime soon, especially as the Federal Reserve is going to raise interest rates drastically, and perhaps even more importantly, look through the prism of becoming even more aggressive later.
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In this environment, Bitcoin stands no real chance, and I do think that we break down rather significantly. When we do that, I anticipate that Bitcoin will finally slice through the crucial $18,000 level, and then perhaps down to the $15,000 level rather quickly. The $15,000 level is a large, round, psychologically significant figure that a lot of people will be paying close attention to, so clearly that would be worth acknowledging.Major Floor Ahead
After that, I fully anticipate that the market goes down to the $12,000 level, an area that has been important in the past as it's where we started the last bullish run from. This obviously should be thought of as potential major floor in the market, but that does not necessarily mean that it must be precise. I think that given enough time, this is a market that will eventually find some type of bottom to bounce from, but whether it is right there at $12,000 remains to be seen.
My longer-term plan is to hopefully be able to accumulate Bitcoin closer to that $12,000 level and build up a rather large position over the course of several months, if not years. After all, we are during“crypto winter”, and central banks around the world are doing everything they can to destroy inflation . Ironically, crypto finds itself in a position where it needs the central banks of the world to stabilize it. I can assure you that the Federal Reserve does not care if bitcoin is stable at all. While I do think that it could set up for a nice opportunity down the road, I also believe that you have an opportunity to pick up Bitcoin much cheaper.
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