Bitcoin Forecast Today - 22/07: Continues To Rally (Chart)

2024-07-23 11:23:09

(MENAFN- Daily Forex)

I am recognizing that we are very close to some type of major break out.
The $67,000 level has been a significant barrier in the past, and it of course should continue to be a barrier in the future.
In fact, during the trading session on Wednesday, we ended up forming a massive shooting star which suggested that we were going to reverse.
However, I think at this point it makes a lot of sense that we should look at that as a potential sign of exhaustion more than anything else.

Underneath, the market shows a lot of support near the 50-Day EMA, which of course is a major technical indicator that a lot of people pay attention to. The fact that we broke through earlier in the week suggest that a lot of traders have flipped to a“long only” type of position. If we can break above the $67,000 level, then it's likely that the market could go looking to the $73,000 level above, which has been a major resistance barrier in the past.

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Momentum

Keep in mind that bitcoin ends up being a major victim or beneficiary of momentum in general. It is difficult to do any fundamental analysis on bitcoin , but it's also worth noting that we have recently seen 141,000 bitcoin dropped into the market due to the Mt. Gox settlement, and of course the fact that Germany had dumped most if not all of its assets into the market as well. The fact that we have since rallied and wiped out most of those losses suggests that we are going to go much higher.

On dips, I think that plenty of bitcoin believers will jump back into the market and take advantage of the dips as an ability to pick up“cheap coins.” Ultimately, I just don't have any interest in shorting bitcoin anytime soon, because as shown its resiliency, and therefore it makes a lot of sense that we will see a bit of follow through as the market is so highly driven by previously mentioned momentum.

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