Price action enjoyed a stellar advance after dipping below 30,000 and was overdue for a correction. While the BTC/USD may challenge its reaction below 43,000, longer-term bullish factors remain intact. As Bitcoin tumbled, El Salvador bought 150 Bitcoins, facing harsh criticism by the opposition. The country now holds 550 Bitcoins and claims it saved $1M in printing costs for fiat currency. Concerns remain about what will happen if Bitcoin faces more downside pressure, with the IMF voicing concerns over making it a legal tender.
The forecast for Bitcoin is cautiously bullish following its 10%+ drop, but traders should exercise caution and patience, as volatility is likely to increase. More downside is possible before price action attempts another advance, driven higher by its ascending Ichimoku Kinko Hyo Cloud. This cryptocurrency pair presently trades between its flat Kijun-sen and Tenkan-sen, and the CCI plunged into extreme oversold territory. Traders should wait for a breakout before buying Bitcoin.
Should price action for the BTC/USD remain inside the or breakout above the $43,900 to $46,700 zone, recommend the following trade set-up:
Should price action for the BTC/USD breakdown below $43,900, recommend the following trade set-up: