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Bitcoin Price Forecast – Bitcoin Continues to Consolidate

By:
Christopher Lewis
Published: Dec 27, 2023, 14:05 UTC

Bitcoin rallied a bit during the trading session on Wednesday, as we continue to see a bit of consolidation.

Bitcoins up and down, FX Empire

In this article:

Bitcoin Forecast Video for 28-12-2023

Bitcoin Technical Analysis

The Bitcoin market has rallied slightly during the trading session on Wednesday, as we continue to see a lot of noisy behavior. That being said, it looks like the 20-Day EMA underneath continues to offer support, and it also appears that we are going to go back and forth, trying to sort out whether or not we can build up enough momentum to make a bigger move. As things stand right now, it looks like the $40,000 level underneath offers significant support right along with the 20-Day EMA, so this is why I believe that we will continue to consolidate rather than pull back. After all, the situation from a fundamental standpoint is starting to line up quite nicely for Bitcoin.

Some of those fundamental factors include the fact that interest rates in the United States are dropping, and that typically does good things for riskier assets such as cryptocurrency. Beyond that, there’s a lot of movement in the ETF space about having a spot Bitcoin ETF for institutional investors to trade. As long as we have “cheap money”, and ETF possibilities, it’s likely that there will be a certain amount of interest in Bitcoin. In fact, a lot of pundits are talking about how 2024 could be one of the biggest years for crypto. As for myself, I’m not as convinced but I certainly see where we have the potential for another big run higher.

Ultimately, this is a “buy on the dips” type of scenario, and I think even if we were to break down below the $40,000 level, there’s also the $38,000 level that comes into the picture to show signs of support. We have the 50-Day EMA there as well, so it all ties together quite nicely. As long as we don’t see some type of major “risk off scenario” that comes into the picture, it’s possible that we have the perfect scenario where Bitcoin continues to rally. Looking at longer-term charts, the $47,500 level above seems to be the target, as it was a major resistance barrier previously. Anything above there would send Bitcoin looking for the $50,000 level next, and perhaps even higher than that as it would be a major breach of selling pressure.

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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