BTC/USD Forecast: Suffers Significant Pullback
Date
12/13/2023 3:31:18 AM
(MENAFN- Daily Forex)
bitcoin saw a substantial drop in value during Monday's trading session, sliding down to the critical $40,000 mark. The $40,000 level carries significant psychological weight, being a substantial, round, and psychosocially noteworthy figure that has garnered widespread attention. Adding to the intrigue, the Relative Strength index (RSI) has dipped back below the overbought condition threshold of 70, hinting at the possibility of sustained upward pressure. Notably, just below the $40,000 level, we find the 20-Day Exponential Moving Average .
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Considering all factors, this appears to be a juncture where many buyers may seize the opportunity and begin purchasing, potentially setting the stage for a rally toward the $45,000 level. The $45,000 level is expected to be closely monitored, and if we manage to surpass it, the $47,500 level emerges as the next point of interest. This level is rooted in the previous market reaction on the weekly timeframe and, if breached, could pave the way for a significant bullish run. Nevertheless, it's essential to keep in mind that the holiday season might divert focus away from trading activities, potentially leading to liquidity issues, particularly for institutional participants Coming?
There is substantial excitement surrounding the prospect of a Bitcoin Exchange-Traded Fund (ETF) potentially launching early next year. Nevertheless, some argue that this development primarily represents Wall Street's desire to extract fees from cryptocurrency trades. Consequently, there is a plausible scenario where the market undergoes a "sell the news" scenario once the ETF becomes a reality. Furthermore, it's prudent to closely monitor the last few days of December, given the recurring trend of "end of the month markup" in the crypto market. This phenomenon, with its roots in the stock market, involves institutional traders pushing prices higher toward the end of the month to report greater profits to their investors.
Taking all these factors into consideration, it's reasonable to anticipate the presence of buyers in the market from now until the end of the year. However, it's unlikely that we will witness a massive upward surge during this period. The confluence of technical indicators, psychological price levels, and the holiday season creates a complex landscape for Bitcoin traders to navigate. As the year draws to a close, the crypto market remains a stage where potential opportunities and challenges await discerning investors , but you will have to be patient and careful with position sizing.
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