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Bitcoin Price Forecast – Bitcoin Continues to Struggle at Same Level

By:
Christopher Lewis
Published: Feb 22, 2024, 14:11 UTC

The bitcoin market pulled back just a bit during the trading session on Thursday near the $52,000 level, which of course is an area that a lot of people have been paying close attention to it.

In this article:

Bitcoin Technical Analysis

Bitcoin initially tried to rally during the trading session on Thursday but continues to struggle with the $52,000 level as resistance. This is an area that of course ended up being pretty important on longer term charts, as it has shown itself to be rather resistant on the weekly timeframe.

And now it looks like we’re just spinning our wheels trying to sort out where we are going next. At this point, if we do fall from here, and it’s looking more and more like we might, I think given enough time, we could go down to the $47,500 level underneath with the 20-day EMA coming into the picture.

This is an indicator that I think a lot of people will be paying attention to in what is a bit of a runaway market. On the other hand, if we do turn around and break above the $53,500 level, then Bitcoin is likely free to go to $55,000. Either way, at this point, Bitcoin is trying to work off this excessive run higher. I do find it a bit interesting that even though there is this massive excitement around the Bitcoin ETF.

It was suggested down here, it was finalized here, and we’re only up about 8% on that despite the fact that we’ve seen all this volatility and that’s the point. I think Bitcoin will become a lot less volatile, which is good for it being an actual asset, and bad for it being a speculative asset down the road. The market is going to change drastically, and you have to keep that in mind. Wall Street has its hands in Bitcoin now, everything that nobody wanted it to be.

With that, they can jump into the ETF and short it very easily. And that will drive down the price because these firms will have to go in and sell Bitcoin. It also can cause massive spikes like we’ve seen. And then of course Wall Street will say, here retail traders, hold my hand, hold my bag. So that is a potential move as well. With that being the case, I think you’ve got a situation where you have to basically be cautious and recognize that each dip is potentially a buying opportunity, but you just can’t go all in. You can’t YOLO this market. If we break above the $53,500 level, I think we go to $55,000 and then $60,000. But this will be the year everybody looks at and realizes that Bitcoin has changed.

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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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