By BTC/USD Forecast: Slams Into the 50-Day EMA – 12 September 2022
Pay attention to the US dollar, it can give you an idea as to where we are going in this market as there is a huge negative correlation.
The size of a candlestick means a lot, and the fact that this is a big one means that we are probably going to continue to see a little bit of a rally. At this point, the market could very well go looking to the $25,000 level, which is an area that I think is a significant amount of resistance. It’s not until we break above there that I would believe in a Bitcoin rally, but I think now it’s likely that signs of exhaustion will continue to be jumped on, as they offer an opportunity to get short yet again.
Breaking down below the $18,000 level will be a very negative turn of events, as it would be a fresh, new low. At that point, it’s very likely that Bitcoin could drop down to the $15,000 level, followed by the $12,000 level. The significance of the $12,000 level could be the fact that we started the latest bullish run from that level, and that there should be a lot of “market memory” attached to that.
A lot of people that I respect expect Bitcoin to drop down to that level, if not the $10,000 area. If we can get down to that area, then I will start to accumulate for the next bullish run. Keep in mind that Bitcoin is highly speculative, and we have a scenario where the risk appetite out there has been eviscerated. Yes, we had a nice run during the day on Friday, but quite frankly I’d be surprised if this rally lasted more than a couple of days. Pay attention to the US dollar, it can give you an idea as to where we are going in this market as there is a huge negative correlation.
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