Bitcoin Price Forecast – Bitcoin Continues to Find Buyers on Dips

Christopher Lewis
Published: Dec 5, 2023, 14:06 UTC

The Bitcoin market pulled back just a bit during the trading session on Tuesday but found buyers underneath as per usual as Bitcoin continues to try to take off.

Bitcoin and trading chart, FX Empire

In this article:

Bitcoin Forecast Video for 06.12.23

Bitcoin Technical Analysis

Bitcoin had initially pulled back just a bit during the trading session early on Tuesday but found buyers underneath the show signs of life. Ultimately, this is a market that I think continues to see a lot of noisy behavior, and therefore I think you need to be cautious with your position sizing. Nonetheless, it’s obviously a market that is ready to go higher and is going along with the idea of the Federal Reserve cutting rates sooner rather than later.

Underneath, the $40,000 level is an area that people will pay close attention to, as it is a large, round, psychologically significant figure, and an area that a lot of people will pay close attention to as potential support. All things being equal, I do think that anytime we are close to that area, it’s likely that we have value hunters coming back into the market. After all, the one thing that Bitcoin tends to thrive on is a lot of momentum, and we certainly have a lot of that momentum at the moment.

Underneath, the 20-Day EMA is rising and has been technical support more than once, therefore I think you will have to pay close attention to that indicator as well. Above, I see the $42,500 level as a potential short-term target, but I think we are also a little overdone so at this point I’m looking for some type of value proposition. In general, this is a situation where we have the market looking a little stretched, but I do think given enough time we will not only stabilize at these levels but continue to go much higher.

Ultimately, I think the market could go as high as $47,000 on longer-term charge, but in the meantime, I don’t think that it’s going to be straight up in the air, so we need to be very cautious with your position sizing, but clearly this is a one-way trade at the moment. This is a situation where you see a lot of noise, but at this point it’s likely that we will have to pick our entry points going forward.

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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