- Bitcoin initially did try to rally during the trading session on Friday, but it looks like the market continues to respect that level as a difficult barrier to break.
- Now we are plunging lower. This does make a certain amount of sense because there seems to be a lot of “risk off” behavior in equities.
- As you know, Bitcoin does what Wall Street decides it’s going to do.
Today it looks like Wall Street wants to sell anything that’s closely related to risk appetite. When you look at the candlestick from the horrible Thursday session, I think you’ve got a situation where we will pull back. Now, I don’t think that this is a trend change by any stretch of imagination, but I think you may make a run down to the 50 day EMA just underneath the $115,000 level, which wouldn’t surprise me at all.
Buy on the Dip Coming?
That does open up the possibility of about and a buy on the dip type of scenario, finding a little bit of value, but keep in mind volume just isn’t that hot right now. So ultimately, I’m looking for some type of value to take advantage of. thought that the daily close above the $120,000 level was kicking off the next leg higher. That was clearly a false breakout. It wouldn’t surprise me at all to stay in this range for the next two weeks or so as we just wait for Wall Street traders to come back from vacation.
Furthermore, keep in mind that the next FOMC statement announcement, et cetera, comes on September 17th. So, we could be looking at choppy behavior between now and then once the Federal Reserve actually pulls the trigger on rate cuts that probably will be very beneficial for Bitcoin.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.