Bitcoin Price Forecast – Bitcoin Looking to Bounce on Tuesday

Bitcoin Technical Analysis

The Bitcoin market has turned around to show signs of life, as we initially fell during the early hours on Tuesday, only to turn around and show signs of strength. It now looks like we are going to be looking toward the 200-day EMA around the $86,000 level. If we can break above there, that would obviously be a very bullish sign, and at that point, you would have to assume that we would then test $90,000.

That being said, there is still a lot of risk aversion out there, so I don’t necessarily think that Bitcoin is just going to go straight up. However, it is most certainly oversold. Bitcoin has a long history of experiencing 15% drops and then quickly recovering, which might be what traders are anticipating.

Keep in mind that Federal Reserve monetary policy, specifically potential interest rate cuts, is likely to be the main driver going forward. This, of course, assumes that we get all the interest rate cuts that people are expecting. On the other hand, if we turn around and break down below the $75,000 level, there could be serious trouble for Bitcoin, at least in the short term.

I’ve been accumulating small amounts here and there, just dollar-cost averaging. Most Bitcoin enthusiasts I know are doing the same, which contributes to Bitcoin’s resilience. There is also the influence of the Wall Street ETF. Wall Street won’t want Bitcoin to crash as rapidly as it has been. While it has had a negative impact over the past few days, the reality is that institutional players will eventually start pushing that product out to more investors.

You could, I suppose, take a Fibonacci retracement study, and you can see that we are currently hovering around the 50% retracement level. This suggests that some buying on the dip is happening at the moment.

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