Bitcoin Price Forecast – Bitcoin Pulls Back

Bitcoin Forecast Video for 27-12-2023

Bitcoin Technical Analysis

Bitcoin has fallen significantly during the trading session on Tuesday to reach down to the 20-Day EMA indicator, which is an indicator that has been rather widely followed during this massive uptrend, which of course it’s above the crucial $40,000 level, an area that will attract a lot of attention in and of itself due to the fact that it is a large, round, psychologically significant figure.

Bitcoin is a market that is heavily influenced by interest rates, as there is a huge negative correlation. After all, Bitcoin is a very speculative instrument, so you need the idea of “cheap money” in order to have large institutions get involved. Speaking of institutions, it’s very likely that only the most diehard traders will be involved in the market between now and New Year’s Day, as most institutions don’t get involved in thin markets. That being said, it’s not necessarily a bad thing, as it could have Bitcoin moving quicker than usual.

Regardless, when you look at this chart, it is obviously one that has buyers willing to get involved every time it pulls back a bit, as we have seen over the last several months. Currently, it appears that we are trying to do everything we can to consolidate and pick up a little bit of value, but right now we also have to look at it through the prism of a market that has a major amount of resistance above, especially near the $44,250 level. If we can break above there, then it’s possible that we could test the $45,000 level, and then after that we could look into the $50,000 level.

In general, this is a scenario where we see a lot of value hunters out there trying to get involved in a market that has been very bullish for a while. That being said, you can’t necessarily jump in with the huge amount of money and therefore you need to look at every dip as a potential opportunity to pick up just a bit more bitcoin going along the way. I have no interest in shorting Bitcoin anytime soon, at least not until we break down below the 50-Day EMA, which is closer to the $38,000 level.

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