BTC/USD Forecast: Gets Crushed in the Dollar Rally – 14 September 2022

The BTC/USD fell rather hard during the trading session on Tuesday as the US dollar took off.CPI numbers coming out of the United States were twice as hot as anticipated, and therefore the US dollar was the big winner.Ultimately, this is a situation where the markets will continue to be very noisy, but I do think that we are eventually going to break through the support.We are not in a “risk on environment”, and Bitcoin has far too much institutional money in it these days to think that it’s going to behave well in this type of situation.

The $20,000 level of course is a magnet for price as it is a large, round, psychologically significant figure, but it’s also worth noting that the market has dipped below there a few times. It seems as if there is a “demand zone” that extends down to the $18,000 level. If that level gets broken, we are going to continue to fall rather significantly. I do think this happens give it enough time, especially as economic conditions continue to deteriorate. Simply put, a lot of “hot money” is going to leave Bitcoin.

This is a good thing. This allows the market to break down to a reasonable level where we can start to accumulate again. This area looks like it could be that general vicinity, but let’s be honest here, Bitcoin is a lot more interesting a $12,000. That is where the market had taken off from previously, and therefore I think a lot of “market memory” comes into the picture at that point.

The size of the candlestick says quite a bit about the overall attitude of the market during the day, and the likelihood of follow-through is rather high on these candlesticks. They very rarely happen in a vacuum, and I think that’s how you must look at it. Having said that, if we can finally break down even further, I will be all about buying Bitcoin at a low level and starting to accumulate it for the next major run higher. With, the very least you can expect out of this market is going to be noisy and choppy behavior, but that’s nothing new for the market as we have seen it act like this for several months.

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