Bitcoin Weekly Price Forecast – Bitcoin Continues to Work Off Froth

Bitcoin Weekly Technical Analysis

You can see the Bitcoin market has just kind of been chopping around and I think at this point we are very likely going to continue to see a lot of back and forth as we try to work off some of the excess froth from previous trading.

The $60,000 level underneath has been of importance for a while, so I think you have to look at this through the prism of potentially finding dips that you can take advantage of and then just simply going long when momentum returns, the $60,000 level will continue to be important. And as long as we can stay above there, I do think that we have a real shot at going much higher.

Bitcoin remains very volatile and quite frankly, it should be due to the fact that we have seen so much in the way of questions about monetary policy. Furthermore, we rallied something like 92% in six weeks. So that’s another reason to think that we don’t have anywhere to be for a while. We are just simply digesting all of those inflows into the Wall Street ETF, which is typical to go sideways after a huge move higher.

Either way, I don’t really want to settle this market, but if we break down below, the $60,000 level opens up the possibility of a drop down to the 52,000 level, where we have seen important action previously. On the upside, the $74,000 level is a major barrier that’s going to take some effort to break back above.

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