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MENAFN- Daily Forex)
In my daily analysis of the financial markets, the Bitcoin market has caught my attention because it tells us that we just have nowhere to be. This might be a little bit disconcerting for“Bitcoin bros”, but at the end of the day there is no real reason for Bitcoin to start taking off anyway. After all, it is an asset that needs loose monetary policy to really get going, and the fact that we've had a couple of positive announcements over the last year has masked the fact that the financial system just isn't set up for Bitcoin to go explosively upwards.
Keep in mind, most of the gains we have seen have been in reaction to the Wall Street ETF, and of course the fact that Donald Trump got elected, bringing in a more crypto friendly administration. However, they have yet to actually do anything, and I think the market is essentially in a“let's wait and see” type of scenario. With that being the case, then I think you need to be very cautious but recognize that we are very much in a huge consolidation pattern Analysis
The technical analysis for this pair is somewhat neutral, but the longer term outlook for Bitcoin is very bullish. That being said, there is the possibility that we enter a fairly negative month ahead, at least from a financial standpoint, not necessarily from a crypto standpoint. This could bring down the value of Bitcoin, but I suspect that it will only end up being a buying opportunity. The reasons I believe this are far beyond the scope of this article, but you can rest assured that if we do see some type of significant sell off here, I'll be more than willing to start getting involved again at lower levels.
EURUSD Chart by TradingView
Ultimately, it looks like we continue to bounce around between the $90,000 level in the bottom, and the $110,000 level in the top. The $100,000 level continues to be“fair value”, and that's something that we should probably keep in mind. I like buying dips and I have been accumulating, but I have not been putting a ton of money into this trade.
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