Bitcoin Price Forecast – Bitcoin Continues to See Upward Pressure

Bitcoin Technical Analysis

Bitcoin has rallied rather significantly during the early hours on Friday again, as we continue to probe the all-time highs. Whether or not we can break above there remains to be seen, but keep in mind a lot of this is driven by the ETF in the United States for Bitcoin. Wall Street joining the party, of course, has people very excited, at least on price speculation.

The question now is going to be whether or not it changes the overall attitude of the Bitcoin market, because quite frankly, it’s an institutional instrument now, and that’s not necessarily the same thing as we have seen in the past. If that’s going to be the case, then I think you’ve got a situation where traders will continue to look at this through the potential prism of something that could break out for a longer term move and more of a buy on the dip strategy will be employed.

That doesn’t necessarily mean that you should be chasing it, but you clearly cannot short this market anytime soon. It’s obviously a bit of FOMO, and at this point in time we are so overextended that I do think a nasty correction is in the cards. I don’t think that correction is something that lasts very long, and at this point in time would love to see this market break down to the $52,000 level.

That level currently is the previous resistance level and of course has the 20-day EMA. So it all ties together quite nicely for a potential bottom. If we can break above the $65,000 level, then I think Bitcoin goes looking to the $70,000 level. And I do think that will happen eventually. Whether or not it happens quickly remains to be seen. And that of course, is a completely different conversation, but it clearly is something that could very well be in our short-term future. I’m a buyer on dips but also recognize that we might be a little overdone at times.

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