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Bitcoin Price Forecast – Bitcoin Continues to Show Volatility

By:
Christopher Lewis
Updated: Jul 10, 2024, 15:06 GMT+00:00

The Bitcoin market has been volatile in the early hours on Wednesday, as the market is trying to do everything it can to bounce from the 50% Fibonacci retracement level underneath. This is a market that is in the throes of potential recovery.

In this article:

Bitcoin Technical Analysis

The Bitcoin market initially took off to the upside during the trading session on Wednesday but has since pulled back quite drastically. At this point, it looks like we are going to continue to hang around this general vicinity, and I think what we are waiting for at this point is to get a read on inflation in the United States, and that is a scenario where we are going to use the Thursday and Friday sessions to get more clarity.

We have the consumer price index coming out and then the producers price index. The market does look like it is trying to take off to the upside, but it’s got a lot of work to do. If you’ve been following my analysis, you know that I’ve been saying that the $60,000 level is an area that I think we need to overcome to truly get bullish.

It is worth noting that we have bounce from the 50% Fibonacci retracement level several times. So really, at this point, all we need is some good news. Mt Gox released 141,000 Bitcoin into the market. That’s part of what’s hurting the market. But I also think that the initial surge of ETF buying on Wall Street was overdone. And at this point, who’s left to buy the market?

That’s probably a very real question. So, I’m not necessarily bearish on Bitcoin, but I do recognize we need to rise above the $60,000 level to make any significant momentum enter the market, and perhaps trying to send Bitcoin back to the top of the previous consolidation area, which reaches all the way to the $73,000 level. If we were to break down below the $52,000 level, or essentially the 61.8% Fibonacci retracement level, at that point, we could see a pretty significant wipe out.

For a look at all of today’s economic events, check out our economic calendar.

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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