Bitcoin Price Forecast – Bitcoin Continues to Recover

Bitcoin Forecast Video for 25-01-2024

Bitcoin Technical Analysis

Bitcoin rallied a bit during the early hours on Wednesday, but we still have the question of the $40,000 level. The $40,000 level of course is a large, round, psychologically significant figure that a lot of people are going to be paying attention to. With that in mind, I’m going to wait to see if we can break above the 50 day EMA to start buying Bitcoin because in that scenario it would not be surprising at all to see Bitcoin looking toward the highs again.

I do believe that Bitcoin is trying to recover from a recent sell-off in a significant support region and if it does, in fact, do so, then the $47,500 level above will be your target. In the meantime, I think you have to be cautious so I would not get overly big with my position because quite frankly, Bitcoin is extraordinarily volatile. And it’s worth noting that it has done nothing but sell-off since the Bitcoin ETF was announced.

This is very similar to back when we got the first futures markets for Bitcoin that saw Bitcoin not only fall, but it fell 80%. Now, I don’t necessarily think that we’re going to drop anything like that, but it does give the vibe of a sell the event type of situation. Buy the news, sell the event, basically. This, of course, is very common with financial markets, as larger traders allow retail to send profits their way.

If we do break down from here and break down below the hammer from the Tuesday session, then we have to ask questions about the $35,000 level where I believe the trend is defined at the moment as the 200 day EMA is racing towards that area. That being said, if we do rally from here, then again, I believe that $47,500 is resistance and we are more likely than not have to kill some time in this $7,500 region. Bitcoin’s still bullish, but now that there’s an ETF out there that institutional traders can short, it’s going to change the dynamics of the markets permanently.

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