Bitcoin Price Forecast – Bitcoin Continues to See Pullback

Bitcoin Technical Analysis

Bitcoin has fallen rather hard during the overnight session as the market drops 8%. Quite frankly, this should not be a huge surprise considering we went straight up in the air. At this point, the job of the Bitcoin bull is to find a pullback that they can take advantage of.

It does look like it’s setting up finally, and of course this may just be a simple reaction to all of the money that has gone into the ETF space only to run out of the inflows. If that’s going to be the case, then there is going to be a transitionary period here where we have to sort out where fair value is. The market had rallied about 93% this year since New Year’s Day, and that is a bit much under any metric. So, none of this should be a surprise. The $60,000 level underneath, I think, is a support level that a lot of people will be paying attention to.

We also have the 50-day EMA and the $52,000 level. You should not be a seller of Bitcoin, but I anticipate that there are a lot of people out there who got a 90% return and we’re more than willing to collect profit only to pick it up again once it pulls back and most of the retail traders have been flushed out. This is the problem with Bitcoin. You get these insane moves and then you get these massive pullbacks.

This looks like more of the same and while I don’t necessarily think it changes the trend of Bitcoin, it does mean that you’re going to have to be a little bit more tactical when you jump into the market. Right now we’re not necessarily in an area where I like buying. I do believe that you’ll get an opportunity to at least drop to the $60,000 level.

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