Bitcoin markets initially fell during the week, testing the $13,000 level, but have bounced quite drastically to test the $16,000 region. By doing so, it looks very bullish but I am concerned about the lack of volume this week. After all, you can see how much stronger the volume was during the previous 2 candles, both of which were negative. Beyond that, I see more volume in the negative candle’s going back several months now, so I begin to wonder whether we can continue this upward pressure. The market has pulled back a bit, but I think it needs to pull back even further. Longer-term traders will probably be more of the buy-and-hold scenario, so it’s likely that the retail traders will be picking up bits and pieces in this area. I suspect that we will continue to see volatility, but one of the things that is helping Bitcoin currently is the fact that the US dollar has been falling in general.
BTC/USD Video 08.01.18
The $20,000 level above is a significant resistance barrier, so breaking above there would of course change the outlook of the market but I think what we are going to see going forward is going to be more choppiness from a longer-term perspective, as the opening of the futures markets seems to have put a damper on the buying pressure that we had previously seen. I’d be careful jumping in with both feet right now, but adding slowly as we go higher might be a viable alternative to doing so.
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Price forecast for the week of January 8, 2018, Technical Analysis
- EUR/USD Fundamental Analysis – week of January 8, 2018
- DAX Price forecast for the week of January 8, 2018, Technical Analysis
- Dow Jones 30 and NASDAQ 100 Price forecast for the week of January 8, 2018, Technical Analysis
- USD/JPY Price forecast for the week of January 8, 2018, Technical Analysis
- USD/CAD Fundamental Analysis – week of January 8, 2018