Bitcoin Price Forecast – Bitcoin Continues to See Overextension

Bitcoin Forecast Video for 14-02-2024

Bitcoin Technical Analysis

Bitcoin initially did try to rally a bit on Tuesday but gave back early gains again as we did on Monday. However, on Monday, we did take off to the upside but on Tuesday it looks a little bit more exhausted. Quite frankly, we have gone straight up in the air for the last several sessions, so a bit of a pullback would make a certain amount of sense.

If we pull back at this point, I think a lot of people will be paying attention to the $47,500 level, an area previously seen as massive resistance. Even if we don’t pull back to this area, there is a significant amount of resistance near the $52,000 level, which is an area on the weekly charts that has been important. This area will attract a lot of attention by traders, as it is such an obvious level on the chart.

If we were to break down below the crucial $47,500 level, then we could drop as far as $40,000 before we break through the previous consolidation. I think a pullback like this that I am describing makes a lot of sense, and it does offer value for those looking to get involved in Bitcoin. After all, the market has got way ahead of itself as we have gained roughly 25% in a couple of weeks.

The new Bitcoin ETF of course is a big driver of everything that’s going on, and therefore sooner or later things will calm back down. Keep in mind that institutions now have an easy way to short Bitcoin, and that will directly influence how this market behaves. I think the 2024 trading year is going to be a lot different than what we’ve seen in the past because Wall Street now has its hands on Bitcoin. In a sense, I think eventually this trade is more like an index, but right now you have to remain bullish just simply because of the new money flowing into the market. A break above the $52,000 level would lead to more of a buy and hold situation.

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