Bitcoin Price Forecast – Bitcoin Continues to Consolidate

Bitcoin Forecast Video for 29-12-2023

Bitcoin Technical Analysis

Bitcoin initially tried to rally a little bit on Thursday but has struggled to continue going higher. This isn’t really much of a departure from what we’ve seen over the last couple of weeks, and quite frankly, it looks to me like we just continue the same consolidation that we have been in since late November.

That’s not really a huge surprise considering that there has been so much gained in such a short amount of time. After all, we were at $25,000 just in late August. Now we find ourselves dancing around the $43,000 level. This has been quite an extensive move to the upside based on a couple of different factors.

The first one of course is the idea of a spot Bitcoin ETF coming early in the year. This has people believing that institutional investors will become much more involved in the Bitcoin market. And while that may or may not be true, it has provided a reason for the market to rally. Furthermore, we see a lot of central banks around the world in a position where they will have to start to loosen their monetary policy.

In fact, the United States has already indicated that they will be doing that in 2024. Bitcoin needs a loose monetary policy because it is such a highly speculative instrument. On short-term pullbacks, I do think that this is a buying opportunity with the $40,000 level offering support right along with the $38,000 level as well. This assumes that we even dropped that far.

Above I see the $45,000 level as resistance. And then after that, the next target could be $47,500, which has proven itself to be important in the past. Ultimately, I think we have a big fight in that general vicinity, but right now it makes a juicy target that a lot of people will be paying close attention to.

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