Bitcoin Forecast Video for 29.11.23
Bitcoin Technical Analysis
Bitcoin has rallied slightly during the trading session on Tuesday as we continue to look for a potential breakout above the crucial $38,000 level. When you look at bitcoin over the last several weeks, you can see we have been grinding all way to the upside, which is actually very bullish considering that we had shot straight up to the $35,000 level previously. After all, markets do not go in one direction forever and therefore the excess froth probably needs to be worked off. In that environment, it does tend to see a lot of choppy behavior, but the fact that bitcoin has hung around this area easily does suggest that there is plenty of demand.
Underneath, I see the $35,000 level as a significant support area that will continue to attract attention if we do pull back toward it. The 50-Day EMA is approaching that area as well, so that could offer a bit of backup as well. That being said, I also recognize that this is a situation where traders are banking on central banks slowing down their monetary policy, and that of course is good for crypto, and more specifically, bitcoin.
Pay attention to the 10 year yield in the United States, it can give you an idea as to whether or not people believe the rhetoric coming out of central banks. If they do in fact think that the central bankers are going to start loosening monetary policy, that will be exactly what crypto needs to go higher, and then by extension of course bitcoin as it will be the first place money flows to.
Beyond that, you should keep in mind that the talk of an ETF coming out of Wall Street course also has implications that people will be paying close attention to, so with that in mind I think there are plenty of reasons to believe that bitcoin goes higher over the longer-term, and with a little bit of patience we should break toward the $40,000 level. Any move above there would obviously be extraordinarily bullish. That being said, if we were to break down below $34,000, I think at that point I would be a bit concerned, at least for the short term.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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