Advertisement
Advertisement

Bitcoin Weekly Price Forecast – Bitcoin Continues to Build Case For Higher Levels

By:
Christopher Lewis
Published: Dec 29, 2023, 14:33 UTC

Bitcoin has initially pulled back during the course of the week just to turn around and show signs of life again. Ultimately, it looks like $40,000 underneath should continue to be a floor.

Bitcoins, FX Empire

In this article:

Bitcoin Forecast Video for 02-01-2024

Bitcoin Weekly Technical Analysis

You can see we initially did pull back during the week in Bitcoin, but we also have found plenty of buyers underneath. So I think this just continues more of the same behavior with 40,000 underneath offering significant support. After all, $40,000 is a large round number. And of course, it is an area that will cause a lot of FOMO trading or just headlines in general. The fact that we continue to find buyers on short-term pullbacks tells me that we are just simply working off froth at the moment, trying to build up enough momentum to continue going higher. With the Federal Reserve cutting interest rates in 2024, it should continue to push Bitcoin higher as risk appetite gets exacerbated. Bitcoin is one of the first places that institutional investors are interested in when taking extreme risk, and this could even ripple into other cryptocurrency markets.

The $47,500 level previously has been important a couple of different times. So, I think it is a target that we may go looking toward. If we can break above there, then it opens up the possibility of the $50,000 level. A breakdown below the $40,000 level could possibly open up a move down to $35,000 where I find the bottom of the overall trend at the moment. Anything below there would be a bit of a surprise, and it probably sends Bitcoin much lower. In that environment, it’s almost certainly going to be a “risk off” move that we would see across multiple markets. In that environment, pretty much everything would be sold off.

For a look at all of today’s economic events, check out our economic calendar.

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.

Did you find this article useful?

Advertisement