Bitcoin Price Forecast – Bitcoin Looks a Bit Confused

Bitcoin Forecast Video for 16-01-2024

Bitcoin Technical Analysis

Bitcoin initially fell during the early hours on Monday, but it does seem like it’s trying to recover a bit. This past weekend was a little bit rough for Bitcoin, as the excitement of the ETF announcement seems to have all but disappeared. That’s not a huge surprise. If you think back to a few years when the Bitcoin futures contract was announced, same thing happened.

People just sold the news, as I did suggest quite a few times that perhaps that might be the case. Now they have, whether or not they’re done, we have to wait and see. But I do see a couple of areas underneath that could be interesting buying opportunities. The $40,000 level underneath is the most obvious, but there’s also the 50-day EMA sitting just above it. The market then sees a lot of support at $38,000, and then $35,000, either way, the fact that we have sold off so drastically over the last couple of days looks bad.

It doesn’t necessarily change a trend that is still very positive overall, but we may have to work off some of the excess froth that it might have a $7,500 range between the $40,000 level and the $47,500 level. If that’s the case then it becomes a simple range-bound trade. I do think that a lot of people are excited about Bitcoin, but once you start to see the fever pitch on social media and YouTube, that’s about the time that smart traders are selling off. I saw numerous videos over the weekend about how Bitcoin is going straight to $100,000. It’s almost like a strange, abusive relationship between retail traders and Bitcoin.

Bitcoin is not a religion. Bitcoin is not a cult. It’s simply an asset that people speculate on. The reality is that a lot of Wall Street’s large firms are going to be speculating on this asset, and they’ll speculate both short and long now. So, the Bitcoin market is very likely to become much more like a typical asset.

It’s everything that most people who were into Bitcoin never wanted. So, the next year for Bitcoin is going to be very telling. In the short term, it does look like we are more likely than not going to have buyers coming back into the market and I do think that the $40,000 level will be important. However, I also warn you that it may not be a straight shot up as some of the social media influencers are trying to peddle right now.

For a look at all of today’s economic events, check out our economic calendar.