BTC/USD Forecast Today- 10/07: Bitcoin Finds Support (Chart)

(MENAFN- Daily Forex)

  • It's hard not to notice that the same area has been offering support over the last several days, and it looks like Tuesday is going to be more of the same.
  • That being said, the market is hanging around the $56,500 level, and it's also an area that previously was marked as the 50% Fibonacci retracement level.
  • In other words, bitcoin needs to do something rather incredible to turn things around and start rallying to reach toward the crucial $60,000 level.

Will Bitcoin Recover?

Bitcoin price will continue to be very noisy, and at this point in time I think you need to pay close attention to the $58,000 level, because it could open up the possibility of a move to that previous $60,000 level. The $60,000 level of course is a large, round, psychologically significant figure, and therefore if we can break above there it's likely that the market could go looking to the 50-Day EMA, and then eventually toward the $67,000 level.

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On the other hand, if we were to break down below the $54,000 level, then we will start to look at the 61.8% Fibonacci retracement level near the $52,500 level, and then this could even open up a move down to the $40,000 level over the longer term. Quite frankly, this is a market that will continue to see a lot of noisy and volatile behavior but given enough time I think we have a situation where Wall Street may have handed off a lot of Bitcoin to retail traders that have no idea what they're doing with it. After all, not only did we get a new ETF, but we also got the Mt. Gox dump of 141,000 Bitcoin into the market, and now we have to see whether or not traders will be able to absorb all of that supply.

I don't necessarily think that we should be shorting Bitcoin, but jumping in right away with a huge amount of money is probably a great way to lose huge chunks of your account. I think you need to see the market pick up a little bit of momentum before putting money to work.

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