Bitcoin Price Forecast – Bitcoin Pulls Back Toward The Crucial $40,000 Level

Bitcoin Forecast Video for 23-01-2024

Bitcoin Technical Analysis

Bitcoin had initially fallen a bit during the trading session on Monday to reach down toward the $40,000 level, which is a major large round figure that a lot of people would pay close attention to. The 50-day EMA is an area that, of course, attracts a lot of attention, and the fact that we are hanging around that indicator also comes into play. If we do break down below the $40,000 level, then I think Bitcoin has a real shot of dropping down to $38,000. What I find interesting is that the Bitcoin market has done nothing but fall since the announcement of the Bitcoin ETF.

I wondered whether or not this was going to be a sell the news type of event, and it certainly seems as if it’s been that exactly. However, it’s probably worth noting that the market is still very much in an uptrend, and I believe that’s probably going to continue to be the case until we break down below the $35,000 level. So, with that, I’m not overly concerned about the trend, but it does look like a market that desperately needs some type of reason to go higher.

After all, the $47,500 level above was a major barrier that we dealt with previously, and therefore I think we need some type of momentum to break through it for a more sustainable move. Keep in mind that now that there is a Bitcoin ETF, institutional investors can and will short much easier than they could in the past. This could become a major issue, as retail traders could be a bit blindsided by this.

In other words, the price of Bitcoin could go down just as easily as up. It’s not like the old days where you had to have physical custody of a digital asset. Furthermore, now that institutions are involved, they’re going to start asking the obvious question, when will people actually start using Bitcoin? Most use case scenarios for Bitcoin right now simply involve speculation.

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