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Bitcoin Price Forecast – Bitcoin Continues to Power Higher

By:
Christopher Lewis
Updated: Mar 6, 2024, 16:12 GMT+00:00

The Bitcoin market rallied a bit during the trading session on Wednesday, as we continue to see buyers jump on this market every time it gets.

In this article:

Bitcoin Technical Analysis

As you can see, the Bitcoin market has rallied a bit during the early hours on Wednesday as we continue to push higher. We are approaching the all-time highs and that might be part of what has the market reeling at the moment, but it certainly looks like the volatility is still there.

This is a market that continues to see a lot of flows into the ETF version on Wall Street. And therefore, Wall Street has to go in and buy up as much Bitcoin as possible. The question is, how long can this mania run? While I do think that it makes a certain amount of sense that Bitcoin is supported by Wall Street, the reality is that Wall Street quite often will run up assets like this and then hand them off to the retail public to foster their profit.

The market has rallied an astonishing amount since Halloween. And as you can see, as I draw the gains from just this year, we’re in the neighborhood of around 80%, the perpetual uptrend that we have been in over the last several weeks certainly can’t be maintained forever. And one has to wonder whether or not the vicious action on Tuesday wasn’t some type of warning shot across the bow. I’d be very cautious buying Bitcoin all the way up here, as, quite frankly, it is an extraordinarily volatile instrument under the best of circumstances. And this is Wall Street just playing speculative money. It’s not anything that’s changed as far as a use case scenario.

In fact, you can make an argument that there is no use for Bitcoin. So It’ll be interesting to see how this plays out, whether or not this ends up being one of those bubbles that pop yet again, or if it is something more sustainable. As things stand right now, you certainly have to be more along the lines of a buy on the dip trader. Chasing it all the way up here is inviting losses to your trading account.

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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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