Bitcoin Price Forecast – Bitcoin Continues to Look Sour

Bitcoin Technical Analysis

The Bitcoin market and has broken through the crucial $60,000 level. At this point I think we are going to see more selling pressure. If you’ve been following my analysis, you know that I thought $60,000 was crucial. At this point the next major support level that I see is closer to the $52,000 level. Bitcoin has been pump and dump for as long as I can remember. There was a 92% increase heading into the announcement of the ETF and the subsequent flow of institutional money into that market.

Now that Wall Street has pumped it, they are willing to sell you Bitcoin at inflated prices and dump it on the market in order to drive prices back down. And then, they will buy it again at a lower price. It’s one of the ways they make money. So, with that being said, and the fact that we have the FOMC meeting on Wednesday, I think a lot of this makes sense. I think it’s probably only a matter of time before we see a test of this $52,000 level. And if we give that up, we’re going to be looking at the 200-day EMA.

A few years ago, we got the Bitcoin Futures Contract, and everybody got excited and that ended up being the top of that cycle. So, I’m not ready to say that’s the case here with the ETF, but keep in mind, this is not the Bitcoin market you’re used to. This is the Bitcoin market which is now being influenced by Wall Street. So, we’ll see. And in the short term though, I think we’re going to try to get down to this $52,000 level. If we could turn around and take out the 50 day EMA between now and then, I’d be convinced that we are going much higher, but this just looks like a market that’s slumping.

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