Bitcoin Price Forecast – Bitcoin Still Looking For Gravity

Bitcoin Technical Analysis

You can see that Bitcoin initially gapped higher on Monday, turned around and fell a bit only to find buyers yet again. With that being said, we are now well above 70,000 and basically, we are in unexplored territory. The biggest problem is you don’t really have anything to measure with. Some people will use like Fibonacci extensions, etcetera, but really we have nothing to measure again. So the only thing you can do in a situation like this is take a look at the overall trend, which is higher, and recognize that when you pull back, there will be people willing to step in and buy it.

Right now, I think 65,000 is going to be a significant support level. Also, I know 60,000 will be just from a psychological standpoint and the fact that the 20-day EMA sits there, and then of course, 52,000 again. The reality is that the market, since the low here in August of last year has gained 190%.

While Bitcoin has a lot of things outside of its sphere influence in it, the Bitcoin ETF being the most obvious that also brings up a certain problem. And the problem is that now institutions can short Bitcoin quite a bit easier. They also will dump it on retail public traders, so I am a bit skeptical of this. I recognize that we could go much higher. Manias last longer than you ever expect them to, but you don’t want to pay out. And that’s the whole point you don’t want to chase it, instead, you want to see a little bit of a retracement and get involved. Because let’s not forget, the last time that we saw this, it happened.

And while I don’t think we’re really there yet, we probably will see something like that again. It appears to me that the speculative nature of Bitcoin is just buy it, pump it up, dump it on unsuspecting late cycle chasers, let them get blown out, buy it again, cheap, pump it up. I mean it’s pure speculation, it has no real use, at least not in the real world yet, and at this point in time Wall Street’s joined the fray and now they’re selling ETFs to people in their pension funds. There’s a lot of money coming in, and that’s true, but eventually, somebody somewhere is going to take profit, so do be aware of that.

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