Bitcoin Forecast Video for 29-01-2024
Bitcoin Technical Analysis
Bitcoin rallied significantly during the trading session on Friday using the $40,000 level as an area to springboard from. This is a good sign for those who are bullish on Bitcoin because quite frankly, it looked like it was stagnant there and it wasn’t really ready to go anywhere. Now, has this changed anything? I don’t think so. I think at this point in time, we still remain very much in a consolidation phase with the $38,000 level to the $40,000 level offering a significant support barrier.
On the upside, you have the $47,500 level as resistance. We have broken above the 50-day EMA and that of course is a very bullish sign, and therefore I think we’ve got a situation where we are going to continue to go higher, perhaps go back and forth. If we break down below the $38,000 level, then we could go down to the $35,000 level, which for me is a floor in the market. Not only is it an area that would be a large round number, but it is also an area that the 200 day EMA is quickly approaching.
All things being equal, this is a market that’s been in an uptrend for a while, and I think that probably continues to be the case, but I also suspect that $47,500 is going to be very difficult to get beyond. Furthermore, we also have a situation where the market will continue to be very noisy. Try to sort out where we go next now that the ETF is out.
The ETF of course makes it much simpler for institutional traders to come out and short Bitcoin, so, keep that in mind, and it does mean that the market is going to change quite drastically this year in its behavior and volatility profile, something that remains to be seen. With that being the case, I anticipate that Bitcoin could start to trade more like an index, or perhaps just a normal stock. This will probably irritate those who are long-term believers, but Wall Street is about to take over.
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This article was originally posted on FX Empire
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