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Bitcoin Price Forecast – Bitcoin Continues to Grind Sideways

By:
Christopher Lewis
Published: Jan 18, 2024, 13:35 UTC

Bitcoin continues to do very little during the early hours on Thursday, as we are simply killing time after a huge move higher late last year.

Bitcoin, FX Empire

In this article:

Bitcoin Forecast Video for 19-01-2024

Bitcoin Technical Analysis

Bitcoin really did not do much during the early hours on Thursday as it looks like a market that continues to work off excess froth. Keep in mind that Bitcoin went straight up in the air for quite some time as traders were anticipating the ETF coming out. Well, at one point we almost doubled in value. Because of this, markets have gotten stretched and now it’s a bit of a fool’s errand to think that we are suddenly going to take off to the upside. If you need any proof, there are a ton of videos on YouTube at the moment screaming “Bitcoin to the moon!” within 12 hours of the SEC announcing it was approving the ETF. Everybody in the world knew this was coming, so now there’s nobody left to buy.

And now that we know that an ETF is coming, there’s no catalyst to move this market. It doesn’t look weak; it just doesn’t look like it’s ready to go a lot higher. At this point, I would anticipate we continue to do a little bit of sideways grinding, and now I believe that we have a support level at the 50-day EMA, the $40,000 level, and the $38,000 level below there.

On the upside, I think that the 47,500 level will continue to be a significant resistance barrier. When you look at the longer term charts, that certainly pans out as well. If we were to turn around and break down below 38,000, then 35,000, for me at least, represents the trend. As long as we can stay above there, I think Bitcoin is okay.

The catalyst for the next move remains to be seen because I think people got a little excited and ahead of themselves and I anticipate that this could be a little bit of a distribution area as well, so I wouldn’t be surprised at all to see the market drop towards 35,000. That doesn’t mean that I would be a seller, it just means that I might buy it at a lower level, nonetheless if we do take out the $47,500 level above then we have a real shot at going to 52,000 next.

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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