Bitcoin Price Forecast – Bitcoin Continues to See Overhead Resistance

Bitcoin Technical Analysis

Bitcoin is bouncing around during the trading session on Tuesday. And after the shooting star that we formed on Monday, that should not be a huge surprise. We are just simply stalling after a shot higher. The question is whether or not we are going to get loose monetary policy.

I don’t think we are, and I think that’s going to be a major problem for Bitcoin sooner or later. It literally needs low interest rates to thrive. Yes, I know that there are true believers out there that will speak to the utility of Bitcoin, the fact that it can’t be expanded, the fact that it’s fast cross-border payments, etc., etc. but the reality is it’s speculative and speculation needs low interest rates.

Interest rates are stubbornly high in the United States, and they may be high for a while. So what I worry about, for those who are bullish on Bitcoin is that Wall Street may have just pulled off a massive coup in order to sell ETF products, push the price up, and now just leave people holding the bag. I mean, that’s actually what Wall Street does.

So, with that being the case, I’m not necessarily thinking about shorting bitcoin. It’s just that it doesn’t look like it’s ready to go anywhere quite yet. If it does take out the $66,000 level above, that would be bullish and it could open up the possibility of the $73,000 level, which recently had been a bit of a double top.

If we break down below the bottom of the most recent swing low, then it opens up a possibility of a move down to the $52,000 level. In general, this is a market that is trying to form some type of base, and I, of course will watch it very closely. If we pull back and see some type of bounce near the $60,000 level, because I think that could be a decent entry point if we get the right price action. But right now, if you’re not already been long in Bitcoin, you’re not jumping in here.

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