Bitcoin Price Forecast – Bitcoin Continues to Drop

Bitcoin Forecast Video for 24-01-2024

Bitcoin Technical Analysis

As you can see, Bitcoin continues to fall. Not a huge surprise, really, considering how it’s behaved since the ETF announcement. I direct your attention to when we got futures contracts for Bitcoin because the exact same thing happened, it was the beginning of the end and the very peak of Bitcoin. Now I don’t necessarily think Bitcoin is going to fall apart at this point, but what I do think is a major reason for Bitcoin to rally has been done, as we now have the ETF. It was a sell the event news and that cannot have been much of a surprise, really, when we had rallied almost 90% from the beginning of that move. Sooner or later, somebody has to take some type of profit and that’s exactly what just happened.

The question now is whether or not 38,000 will hold because that was the next support level after the large round figure of 40,000. Breaking down below the 38,000 level opens up 35,000, but for me, I think that is the absolute floor in the market. The 200-day EMA is racing towards that area, so if we break down through it, that would be extraordinarily negative.

If we break down below $35,000 on a daily close, I think the uptrend’s done. While that would be a bit surprising, it wouldn’t necessarily be out of the realm of possibility. The biggest problem Bitcoin will face is, as things stand right now, it’s a speculative instrument because there is no real world use for it other than cross-border payments. The reality about that is there are multiple solutions and it’s not that big of a deal, at least in everyday life.

Yes, in corporate payments it’s possible to use it, but corporations are not using Bitcoin, most aren’t, at least. So now that we have an ETF for Bitcoin, keep in mind institutions can short Bitcoin much easier now. That will make it behave more like a traditional financial market, like an index or something similar. At this point, between here and 35,000, we need to see a bounce or Bitcoin could be done for a while.

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