Bitcoin Price Forecast – Bitcoin Continues to Bounce Around in The Same Range

Bitcoin Forecast Video for 17-01-2024

Bitcoin Technical Analysis

Bitcoin initially pulled back just a bit during the trading session on Tuesday but has since seen buyers jump in in order to take advantage of the dip. All things being equal, it’s interesting to pay attention to Bitcoin at the moment, as we have seen a lot of excitement about the Bitcoin ETF coming but at the same time, we have done nothing but sell-off since then.

The $47,500 level above is a massive resistance barrier, and I do think it’s going to take a lot to get above there. It’s a resistance barrier that we have seen multiple times over the longer term, and therefore, this is definitely a point of contention as far as technical analysis is concerned. With that being said, I would expect a lot of choppiness going forward and therefore volatility would be expected.

Speaking of technical analysis, we have the 50-day EMA sitting just below current pricing and just above the $40,000 level. The $40,000 level is an area that’s been supported previously and of course is a large round number. That would attract a lot of attention and from what I see, it is probably short-term support. Breaking below the $40,000 level then opens up the possibility of a move down to the $38,000 level and then eventually the $35,000 level after that.

All things being equal, if we can break above the shooting star from last week that pierced the $47,500 level, I believe the market then goes looking to the $52,000 level. I am bullish on Bitcoin, but I also recognize that we have entered a very interesting phase at the moment because now people have to determine what exactly they are going to do with Bitcoin going forward. The problem with an ETF is that it will be easier for institutional traders to short Bitcoin now, so it becomes more or less like the stock market. With that being said, the behavior of Bitcoin by the end of the year will probably be quite different than what most traders are used to.

For a look at all of today’s economic events, check out our economic calendar.