Bitcoin Price Forecast – Bitcoin Continues to Grind at The Same Level

Bitcoin Technical Analysis

Taking a look at Bitcoin, you can see that we have fallen a bit during the early hours on Friday, as we continue just to see a lot of grinding back and forth based on the $52,000 level. With that being said, I think you have a situation where market participants will continue to look at this through the prism of what’s next. After all, we got this excitement about a potential Bitcoin ETF along the way for the end of last year. And then we eventually got that announcement, spiked above $47,500, and then pulled back to $40,000, and then rallied to $52,000, and we find ourselves here just kind of hanging about, sorting out where we go next.

Wall Street has an ETF. Okay, now what? I think that’s the problem the market has right now. $52,000 is an area that’s been important more than once. And therefore, I think it does make a certain amount of sense that that market memory causes a bit of hesitation. At the very least, even if you’re extraordinarily bullish on Bitcoin, the bounce from Halloween of 40% does need to be worked off.

Another thing that needs to be thought about though is Wall Street has a long history of pumping these things up and then handing them off to the retail trader. It’s your job to buy their gains. So, with that being the case, what Bitcoin really needs, honestly, for a sustainable rally, for long-term rally, to get the longer term numbers that everybody keeps hyping up, it needs a use case scenario. And it just doesn’t really have that at the moment, at least not on a scale that suggests it will be a commonly used asset.

As long as that’s the case, Bitcoin becomes a fringe asset and you should never put all of your money in it. Yes, you could have gained 40% since Halloween, but there are also numerous times when you could have lost 80% in the past, so it’s not necessarily something you want to have a ton of your portfolio in. It remains bullish at the moment, and it could very well pull back to the $47,500 level and still look very healthy.

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