The Bitcoin market has gone back and forth during the course of the trading week, as we continue to pay close attention to the $40,000 level, an area that keeps popping up on longer-term charts.
As you can see, the Bitcoin market has been a little bit all over the place during the trading week, but I also recognize that the $40,000 level is going to continue to be very important. Certainly, it looks as if it has held as support, at least in the short term. If this continues to be the case, that would be a very bullish sign for Bitcoin, allowing people to build up a little bit more in the way of confidence when it comes to getting involved.
Over the longer term, we’ll have to wait and see how this plays out. But I do think that we are now in a somewhat strange scenario because the ETF noise or news, if you prefer, has come and gone. And with that being the case, now we’re looking for a reason to rally and we need to figure out what it is that’s going to move Bitcoin next. Ultimately, I do think we have a situation where we go higher, but it’s going to take some time to get there.
We may break below $40,000 in the short term, but I think $35,000 is going to be your floor. Most pullbacks will be looked at as buying opportunities and it certainly looks as if 2024 is going to be kind to the crypto world. If that’s going to be the case, then Bitcoin will be the first place people will continue to see opportunities, and of course Bitcoin will move the rest of the crypto markets as they generally follow the leader here.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.