Bitcoin Price Forecast – Bitcoin Continues to See Support

Bitcoin Technical Analysis

The Bitcoin market has been slightly positive in the early hours on Wednesday, but at this point in time, it looks like the market is struggling a little bit with the 200 day EMA. It’ll be interesting to see how this plays out. The $50,000 level underneath of course has offered significant support and therefore I think you’ve got a situation where the $50,000 level now will be major trend defining and what I mean by that is if we break down below that It’s possible that we could really see Bitcoin fall apart.

On the other hand, if we continue to rally and can break above the $60,000 level, it’s very likely that we will then see Bitcoin go racing towards the 50-day EMA above. Ultimately, this is a scenario where the market is going to continue to be volatile, and that should not be a huge surprise because under the best of circumstances, Bitcoin tends to be volatile.

Overnight we’ve had the Bank of Japan suggest that maybe they’re not as hawkish as people once thought and that has put a little bit of a jolt of risk appetite into the markets, but I don’t know how long that lasts. Because of this, I would be very cautious. It’s a good start on the recovery, but I don’t know that the “all clear” has been sounded. I would feel much better about Bitcoin above the $60,000 level. That being said, if you truly want to get involved, you need to be cautious about your position sizing at the very least.

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