Bitcoin Price Forecast – Bitcoin Continues to Rally

Bitcoin Forecast Video for 21.12.23

Bitcoin Technical Analysis

Bitcoin rallied again during the trading session on Wednesday, as it looks like we are going to do everything we can to continue to rally. Keep in mind that the 44,000 level has offered a bit of resistance recently, but after that, I think the market could go look into the $45,000 level as it is a large, round, psychologically significant figure, but the real target is going to be $47,500, as we have seen on the weekly charts as it is a major resistance barrier.

Underneath, the 20-Day EMA has offered a bit of support, and the 50-Day EMA is racing toward price action as well. With this being the case, I think the market is likely to continue to find value buyers every time it does drop, and I think it’s probably only a matter of time before it rallies. Keep in mind that liquidity will start to dry up a bit, especially from an institutional standpoint, so we will have to look at that through the prism of trying to find enough buyers or sellers to move the market. That being said though, it could cause erratic movement. Regardless, this is a scenario where you need to look in one direction only, and that’s higher. Bitcoin is going to continue to get a bit of a boost from central bank easing especially in the United States. As long as that’s the case, I think Bitcoin will continue to do fairly well. After all, you need a lot of liquidity for people to go out and purchase some of the riskiest assets on the planet, which BTC most certainly is.

With this being the case, buying on the dips will be the strategy that most people continue to use, and I do think that we get to the $47,500 level sooner rather than later. Breaking above that level will take a significant amount of momentum, and that might be a bit of a challenge between now and the new year, but that being said, I do think it happens given enough time due to momentum, and the fact that the Federal Reserve members have completely abandoned any type of tightening.