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BTC/USD Forecast: Bitcoin Drops on Tuesday to Reach the 200 Day EMA

By Christopher Lewis
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.
  • The Bitcoin market has plunged during the early hours of Tuesday, reaching the 200 Day EMA.
  • The market continues to see a lot of noise, and as there is a massive “risk off” move during the session, Bitcoin pays the price.
  • The markets will continue to look at the world through some kind of concern, as trade wars are likely to heat up.
  • Furthermore, the US government still hasn’t done anything about the regulation of crypto, and by extension, Bitcoin.

BTC/USD Forecast Today 26/02: BTC Consolidation (Chart)

Technical Analysis

The technical analysis for this market is still bullish, but only just. The market continues to look to the future and wonder about the future use of Bitcoin, and what it will become. The 200 Day EMA will of course be important, and with this, it is interesting that we have bounced from it.

The question now of course is going to be whether or not we can hold the bullish momentum. If not, the Bitcoin market could very well drop to the $74,000 level, as it was once significant resistance. “Market memory” comes to mind at that level.

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The size of the candlestick is worth noting, as it is massively bullish. The candlestick being this big means that it will take some confidence building to say the least. The market breaking below that moving average would be very negative and could send BTC plummeting. However, I still think that it is only a matter of time before value hunters come back into the fray and pick up “cheap coins”.

This is what I think we will have to pay attention to on some kind of sell off. This could be a nice opportunity for those who are patient enough. The question is whether or not we are buying near this area, or if we are buying at lower prices?

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Christopher Lewis
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.

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