Bitcoin Price Forecast – Bitcoin Continues to Build a Possible Base

Bitcoin Technical Analysis

The Bitcoin market has gone back and forth during the course of the trading session again on Tuesday, as it looks like we are hanging around the $56,500 level. Ultimately, you should also pay close attention to the fact that it is a 50% Fibonacci retracement level from the initial rally. So, I think a lot of people are really weighing whether or not this is going to hold. At this point, I think the easiest way to trade this market is to let it break the $60,000 level to the upside and then you can open up the possibility of a move towards the $64,000 level, possibly even the $67,000 level.

On the other hand, if we were to break down below the $54,000 level, then I think it opens up the possibility of a drop down to the $50,000 level. At this point, we are just simply seeing whether or not Bitcoin can get its footing back, but right now, it’s just killing time.

You could make an argument for the last little pullback of this pseudo double bottom being a little higher than the one before is a good sign, but we have not broken above the resistance barrier yet, so that is just conjecture. Bitcoin has been slammed as of late, and quite frankly, I think sooner or later you have to ask questions as to where exactly are we going with this.

You know, it’s been well over a decade, and we still haven’t found a use for it. So. If that’s the case, then sooner or later, somebody is going to ask where the value proposition is. There will be the usual, you don’t understand it comments, but what I do understand is, it’s not being used in the real world. That’s the only thing to understand here. But I also understand that Wall Street has money invested in this now. So, they will keep it afloat.

That’s why this is going to start trading like an index, and it won’t be anywhere near as thrilling or as exciting as it was just a few years ago. That does give it a natural upward trajectory over the longer term though, but at this point in time we are most certainly looking at a market that is struggling and therefore I need to see that $60,000 level recaptured to start putting money to work.

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