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Bitcoin Price Forecast – Bitcoin Continues To Chop Away At Resistance

By:
Christopher Lewis

Bitcoin tried to rally again during the trading session on Wednesday, as we continue to fight right around the crucial $38,000 level.

Bitcoin and chart, FX Empire

In this article:

Bitcoin Forecast Video for 30.11.23

Bitcoin Technical Analysis

Bitcoin has gone back and forth during the trading session on Wednesday as we continue to see a lot of people trying to push this market higher, but we also have gotten a little overstretched at this point and a pullback would make a certain amount of sense. In fact, I would love to see Bitcoin drop down to the $35,000 level and bounce, because it would be a healthy turn of events. The 50-Day EMA has been racing higher, and it looks like it may reach the $35,000 level rather soon. That would add yet another reason for the market to find buyers, so therefore it’s worth paying attention to.

Underneath, we have the $30,000 level also offering support, but if we start to drop that far, I suspect it will shake a lot of people out of the market. All things being equal, the thing that people pay the most attention to when it comes to Bitcoin, at least institutional investors, will be interest rates in the United States. If it’s a straight start to drop even further, that should help Bitcoin, but regardless we have seen the momentum get a bit away from itself. If we were to break out to the upside here, it opens up a path to the $40,000 level where I would expect to see a significant amount of resistance as well. Breaking above $40,000 could really shake up the market quite drastically.

Ultimately, I do think that a “buy on the dips” strategy is probably the best way to go, because chasing the trade will get you killed in the markets. Bitcoin has risen $8000 in just a couple of weeks, and now that we have more institutional players involved in the market, the days of 15% gain in 24 hours are long behind us without some type of massive change in the economic landscape. With that being the case, I think just being patient enough to take advantage of value is going to be the way that you have to take on the Bitcoin market. Furthermore, you will have to keep an eye on the bond market to see whether or not loose money is coming down the pike, which is something that Bitcoin loves.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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