Bitcoin Price Forecast – Bitcoin Continues to Look Soft

Bitcoin Technical Analysis

Bitcoin‘s had a very rough Thursday, and this is interesting. I’m not real sure what to make of it because it is Independence Day in the United States, so Wall Street isn’t there to defend what they have been buying into, but it is worth noting that the last time we pulled back to here, we bounced significantly with the $56,500 level being important. With that being the case, I think you need to look at this through the prism of whether or not market participants still buy the story.

Because quite frankly, Wall Street has a long history of selling things to the public and then dumping it off on them. Did they just do that with Bitcoin? We don’t know. But, and I’ve been saying this for quite some time, there’s no use for Bitcoin, at least not a daily use that I’ve seen come to fruition. If that changes, then yes, it becomes a different thing. I understand the concept of Bitcoin. It’s not that I don’t understand it. It’s that with my own eyes, I see it not being used.

So, I do think eventually Bitcoin will implode. I don’t think it implodes right now. I don’t even think it will implode in the next couple of years, but sooner or later, the jigs up. At this point, you could say that we are testing the 50% Fibonacci retracement level again from the massive shot higher like five months ago. And it could hold, and if it does, if the US dollar gets hammered after the jobs number on Friday, for example, that probably helps Bitcoin. But we’re at a very precarious spot.

If we drop below the $56,000 level, that opens up the door almost immediately down to the $51,000 level. If we give up $50,000, that would be extraordinarily negative. The stochastic oscillator is reaching the oversold area, but it’s not quite down there yet nor has it crossed over. The MACD of course is pretty sold off but looks somewhat stable. I think a lot of this comes to the job market in America which is ironic because now that Bitcoin is a Wall Street asset, it behaves like an index or an ETF. It no longer will have these 15% in one day swings. So, a lot of people that had asked for adoption and institutionalization of Bitcoin have since gotten it. And since then, it’s really done nothing. It’s just gone back and forth in this range.

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