Bitcoin Price Forecast – Bitcoin Continues to Show Strength

Bitcoin Technical Analysis

The Bitcoin market rallied again during the early hours on Thursday as we are now well above the 62,000 level. The next challenge, and I do think this is a very important one to pay attention to, would be the $65,000 level. And the reason I say this is that if we can break above there, we will have finally made a higher high. We haven’t seen one of those since the ETF was released. And that, of course, is not a good look. It is a very strong move so far, though. But what I do worry about with Bitcoin isn’t necessarily central banks or anything like that.

But the reaction to the 50 basis point rate cut could be very nasty by the time it’s all said and done. We’ve seen this before, and it’s a general rule. And when the Federal Reserve cuts rates the way it has, that’s not a good thing. You get a lot of risk off behavior. And if that’s the case, Bitcoin will get hammered. The idea that eventually the printing of money or easing a monetary policy should help Bitcoin probably comes into play.

But the question is, does it help right now? You see a lot of times in some type of sell off, the things that are performed the best suddenly perform the worst. And the reason is hedge funds or large traders are selling those positions to cover losses and margin in the losing positions. It’s called raising liquidity. So that is one serious threat I see to Bitcoin at the moment. We’ll have to wait and see though. It’s definitely a market that has been very interesting to watch. It still hasn’t made a higher high yet, so technically it’s in an intermediate downtrend. Whether or not that changes, we should know here in the next couple of days.

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