By BTC/USD Forecast: Rallies on Dollar Weakness – 13 September 2022
There are still a lot of economic headwinds out there, so is difficult to imagine that a lot of money is going to go flying into Bitcoin in this environment.
The $24,000 level above should be thought of as potential resistance, so pay close attention to it. That’s an area where I would expect to see sellers jump back into the market, as it is where they did last time. It’s worth noting that a lot of the volatility in the crypto market has crept away, and that is a good sign, at least in the short term. There are still a lot of economic headwinds out there, so is difficult to imagine that a lot of money is going to go flying into Bitcoin in this environment. I think what you have in this situation is a simple relief rally, but whether it is the market trying to form a bottom remains to be seen.
There is the potential of a “double bottom” near the $18,000 level, but I think we need to break above that $25,000 level above to confirm it. A lot of this is going to come down to US dollar strength or weakness, as it’s a great gauge on whether traders are willing to take on a lot of risk. Right now, at least in the last 24 hours, they seem to be able to. However, it would take very little to get the markets selling off again. Remember, most of these short-term rallies are nothing but noise, and in this case perhaps predicated on the idea of Ukrainian gains on the ground, which of course has nothing to do with Bitcoin. In other words, this is probably outside noise influencing the market in the short term. I still suspect that if you are a longer-term bull of Bitcoin, you probably have an opportunity to pick up more on a dip sooner rather than later. If we break down below the recent lows, that opens a move down to the $15,000 level next.
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