Bitcoin Price Forecast – Bitcoin Continues to Look For Its Legs

Bitcoin Technical Analysis

Tuesday has been slightly positive for the Bitcoin market as we see the market trying to attempt its recovery after briefly on Monday dipping below the $50,000 level. This snapback has been pretty strong, but you have to look at this through the prism of the longer term charts and you can see a lot of technical damage has been done to this market.

After the candlesticks that make up the previous four or five trading sessions, I don’t know that you want to jump in this right away and start buying hand over fist. There has been significant buying though, and that of course is something worth paying attention to. I think an obvious level to pay attention to if we start to drop again would be $50,000.

That’s mainly due to the psychology around a big figure like that whether or not we can break through there, that remains to be seen. We did see a $5,000 bounce, and that’s not exactly nothing. If we can break back above the 200-day EMA, closer to the $58,000 level, then I think you will see people jumping back in. But this has been a brutal move, and therefore I think you have to be very cautious. You cannot buy big positions here.

Anything below the lows of the Monday session could send Bitcoin reeling, but let’s face it, since we had the initial surge from the ETF on Wall Street reaching just over $73,000, it’s been progressively lower in price. So it’s a little early to call it a downtrend, but it certainly looks like malaise could be a really good word to describe this market.

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