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Bitcoin Price Forecast – Bitcoin Gets Slammed

By:
Christopher Lewis

The bitcoin market fell rather significantly during the trading session on Monday morning, dropping down to the $40,000 level before turning around.

Bitcoin down arrow, FX Empire

In this article:

Bitcoin Forecast Video for 12.12.23

Bitcoin Technical Analysis

Bitcoin fell significantly during the trading session on Monday, reaching down to the crucial $40,000 level. The $40,000 level course has quite a bit of psychological importance as it is a large, round, psychologically significant figure, and an area where a lot of people have been paying attention to. Furthermore, the Relative Strength Index has broken back below the overbought condition level of 70, so it does suggest that perhaps we are going to continue to see upward pressure. Just below the $40,000 level is also the 20-Day EMA.

All things being equal, this is an area that I think a lot of buyers are going to jump in and start buying, perhaps opening up a move to the $45,000 level. The $45,000 level is an area that I think a lot of people would be paying close attention to, and then of course if we can break above there, the $47,500 level is the next target, as a potential target based upon the previous reaction on the weekly timeframe. Anything above there then truly opens up a huge new bullish run. That being said, you also have to keep in mind that a lot of people are going to be focusing more on holidays than anything else, so liquidity could be an issue, especially for the institutional side.

There is a lot of excitement about the potential Bitcoin ETF that could be coming out early next year, but at the end of the day, it really doesn’t mean anything more than Wall Street peeling fees off of trades. Because of this, it’s likely that we will see a potential “sell the news” type of situation, and as crypto tends to be manipulated at the end of every month, it might be worthwhile paying close attention to the last couple of days of December, because the pattern over the last several months has been “end of the month markup” when institutional traders push the price higher in order to report more profit to their investors. This is a fairly well-known phenomenon, which has its roots in the stock market. All things being equal, I do think that we probably have buyers between now and the end of the year, but I don’t necessarily expect any type of massive shot higher.

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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