Bitcoin Weekly Price Forecast – Bitcoin Continues to See Pressures

Bitcoin Weekly Technical Analysis

The Bitcoin market initially tried to rally for the week, but then collapsed to break through the crucial $56,500 level, which is where we had dropped to previously. We are below the 50% Fibonacci retracement level, but it does look like Friday we are trying to bounce enough to perhaps recapture the $56,500 level. If we can, that would be an extraordinarily bullish sign.

Taking that area out to the upside and then going up to the $60,000 level, I think in that area, you will see a bigger fight. Anything above the $60,000 level, of course, would be extraordinarily bullish. Now, keep in mind that Mount Gox is finally releasing 141,000 Bitcoin into the ecosystem due to the settlement in the court cases. And as a result, there is a lot of supply coming online. Now, the question, of course, is does anybody want it?

It seems like we got this massive inflow into the idea of owning Bitcoin via an ETF and then did nothing. We essentially spent four months going sideways and now we’re starting to drift lower. I think some of that was a mania induced by Wall Street saying, hey, look, we have an ETF now and a lot of hot money just flew into it.

Whether or not that actually is sustainable remains to be seen, but Wall Street does have a history of creating bag holders. Let’s not mix words here. The market very well could rally from here, and I do think it’s a little early to get aggressively short, but we are most certainly sitting on a precipice and need to pay attention to the two resistance barriers above.

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