Bitcoin Price Forecast – Bitcoin Has a Wild Ride in Early Trading

Bitcoin Forecast Video for 04-01-2024

Bitcoin Technical Analysis

Bitcoin had a very rough few hours during the early hours on Wednesday as we slammed all the way down to the $40,000 level. That being said, it already looks like we are trying to recover a bit. So, I think at this point in time, you have to consider this a market that gets spooked, but there will be buyers waiting for each dip. That is generally how crypto works. You get a lot of these sudden crazy moves, but the longer term trend eventually reasserts itself. Keep in mind that liquidity could be a little bit of an issue, and of course we will have to pay close attention to the 10 year yield in the United States as it’ll give us a gauge as to whether or not money’s supposedly going to be cheap.

After all, the Federal Reserve has moved its dot plot around enough to have people betting that the Fed will end up cutting rates three times next year. Cheap money is good for crypto, and of course, the first place that most institutional traders go to is the Bitcoin market. Bitcoin will lead the rest of cryptocurrency either higher or lower, but it’s worth also noting that the market has been extraordinarily bullish. So, a bit of a pullback would make a certain amount of sense.

Either way, this is not a market that I’m willing to start shorting anytime soon and the fact that the $40,000 level seems to be holding is yet another sign of strength. If we can break out to the upside, meaning clearing the $45,000 level, there’s no real reason to think that Bitcoin won’t go looking to $47,500 and then eventually $50,000, while the 50 day EMA and the $35,000 level could both offer quite a bit of substantial support. Either way, be cautious due to the inherent volatility that this market has under the best of conditions, but right now it certainly looks as if the buyers have the upper hand, despite the fact that the market took such a nasty plunge early in the session.

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