Bitcoin Price Forecast – Bitcoin Continues to Consolidate in Bullish Uptrend

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Bitcoin Technical Analysis

Taking a look at the Bitcoin market, you can see that we initially did pull back just a bit during the early hours on Monday, but then turned around to show signs of life. It looks like the $52.000 level will continue to be a bit of a magnet for price and as we consolidate in this area, it does make quite a bit of sense that traders are simply trying to work off a lot of the froth from the move higher.

The $52,000 level is an area that has been important resistance multiple times in the past. So, this would not necessarily be a huge surprise that we would choose to grind away here. The question now is what will move this market higher? I suspect that it will just be simple ETF inflows and that opens up a move to the $55,000 level, and then the $60,000 level after that. Short-term pullbacks will more likely than not find the 20-day EMA and the $47,500 level as potential support levels.

I don’t have any interest in shorting Bitcoin at the moment. It is just simply far too bullish from a longer-term standpoint. The question now is what happens now that we have an ETF? I suspect that the market changes and probably not in the way most traders will like. This will become a low volatility environment. So, while it could possibly make the idea of Bitcoin being money somewhat possible, the reality is that the market that people have enjoyed for years of huge swings in very short amount of time could possibly disappear as institutions get involved.

Furthermore, it becomes much easier to short Bitcoin, so be aware of that now. With that being said, it’s still bullish at the moment, although we are simply taking a bit of a pause in order to go higher over the longer term from everything I see on the chart.

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This article was originally posted on FX Empire

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