Bitcoin Price Forecast – Bitcoin Continues to Go Sideways

Bitcoin Technical Analysis

Bitcoin has gone back and forth during the course of the early hours on Tuesday again, as we continue to see a lot of back and forth indecisive trading. With this being said, I see this market hanging around between the $58,000 area and the $61,000 level in general. Ultimately, I think this is a situation that will continue to be very noisy and I think you also have to keep in mind that risk appetite has a huge part to play when it comes to Bitcoin. After all, nobody really knows what it is being used for in the end. However, a bet on this market is simply a bet on higher prices, citing the “Greater Fool Theory.”

After all, Bitcoin is pretty far out on the spectrum, but it is also a Wall Street asset now. Wall Street controls Bitcoin via an ETF and therefore they will make sure it succeeds. Whether or not it’ll actually ever be used for anything is a completely different question, but the ETF, which of course will go in and buy more and more Bitcoin, will continue to attract inflows until one day when it doesn’t, and they will leave everybody holding the bag.

However, that is something that doesn’t happen anytime soon. This is a new toy for Wall Street, and they will continue to step in and try to support it. Short-term pullbacks should end up being buying opportunities, but if we were to break down below the $50,000 level, that could lead to something much more serious.

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