Bitcoin Price Forecast – Bitcoin Continues to Hover at 20-day EMA

Bitcoin Forecast Video for 02-02-2024

Bitcoin Technical Analysis

Bitcoin fell slightly during the trading session on Thursday, but it continues to hang around the 20-day EMA. With the non-farm payroll numbers coming out on Friday, it does suggest that perhaps the bond markets may have their say when it comes to Bitcoin and other markets. So, with this being the case, I would expect some volatility. However, the setup really hasn’t changed much, despite the fact that Jerome Powell was a little less dovish than I think a lot of people wanted him to be after the FOMC press conference on Wednesday. At this point, we have the 50-day EMA underneath still offering support right along with the 40,000 level and then, eventually, the 38,500 level. This is an area that I think we will continue to chop around in the short term future as we try to sort out where we are going next.

After all, the market had rallied almost 90% in anticipation of a Bitcoin ETF, and now that we have gotten that ETF, people are trying to figure out what the next move is. At this point, nobody really knows, but at the very least, it does make quite a bit of sense that we would have to work off some froth. This is normal market behavior and therefore the longer term traders will recognize this as an area of consolidation more than anything else.

The $35,000 level underneath, for me, is the end of the uptrend. If we were to drop down below there, and that’s about $7,000 below where we are right now, things could get rather ugly. This is further backed up by the 200-day EMA as well, so all things being equal, I do believe that Bitcoin is still a market that you buy on dips, but I don’t know if we’re going to break above the $47,500 level very easily or for that matter in the very short term.

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