Bitcoin Price Forecast – Bitcoin Drifts Through The Holidays

Bitcoin Forecast Video for 26-12-2023

Bitcoin Technical Analysis

Bitcoin has pulled back a little bit on Friday, and it looks like we are going to drift into the holidays. All things being equal, I think this is a situation where we continue to see a lot of buyers jump into the market and try to take advantage of value as we go along. That’s been the plan all along when it comes to cryptocurrency, and of course Bitcoin will lead the way. The 20-Day EMA is an area of support, so if we get down to that moving average again, that could be a solid short-term floor.

Underneath there, we have the $40,000 level and a trendline that both come into the picture as well. Keep in mind that the Bitcoin market is highly sensitive to interest rates, because quite frankly, that’s what influences a lot of institutional traders as to whether or not they put a lot of money in this market going to look for higher yield when they cannot get that guaranteed “risk-free rate” in the US Treasury markets that they demand.

All things being equal, this is a scenario that continues to be a “buy on the dips” scenario, and I think you have to approach it as such. If we break above the $45,000 level, then it’s possible that we could go looking to the $47,500 level above, which is a major resistance barrier that we had seen a lot of selling from previously, and therefore I think it does make sense that it would be a bit of a target. If we break above there, then it opens up a move to the $50,000 level, which obviously would attract a lot of attention.

On the other hand, if we were to break down below the $40,000 level, then it’s likely that the market will pull back even further, perhaps looking toward the 50-Day EMA. In general, this is a market that I think continues to be noisy, and of course will be a bit odd during the holidays, but all things being equal this is a scenario that continues to look very bullish over the longer-term, but the next couple of sessions could be throwaway sessions.

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