Bitcoin Forecast Video for 01-02-2024

Advertisement

Bitcoin Technical Analysis

Bitcoin fell a bit during the trading session on Wednesday to reach the 20-day EMA. The 20-day EMA, of course, is an indicator that many people will pay close attention to, but there’s even more support just below the 50-day EMA. The 50-day EMA, of course, is essential, and the $40,000 level just below there is also very important. So, with that being said, I think you’ll see many questions asked of support underneath, and I do think that there will be buyers down there. That being said, I think most buyers will look at this through the prism of value. Can they find value at this point?

Ultimately, I think you’ve got a situation where you continue to wait for a drop and a bounce, which is what you’re looking for to go long. If we can break above the $45,000 level, then I think it opens up a move to the $47,500 level. Remember that there is the FOMC press conference, which will probably move the market more than anything else. After all, the interest rate policy of the Federal Reserve being loose is pretty much everything that Bitcoin has ever dealt with until the past year and the whole idea behind Bitcoin was to run away from money printing. Whether or not that continues to be the correlation will be tested late during the session and, of course, in the next couple of weeks as we sort out what to do with various assets around the world, including Bitcoin.

So, if they go back to that, that should, in theory, help digital assets, not only Bitcoin but multiple other ones as well. If we break down below the recent swing low, then the $35,000 level is your major support level and trend bottom from what I can see. Bitcoin released 80 to 90% gains due to the idea of the Bitcoin ETF. Well, we already know that now, so now the question is, what will be the next catalyst?

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