- My daily cryptocurrency analysis obviously starts with Bitcoin, which was completely destroyed during Tuesday’s trading session.
- There are many reasons to think this has happened, but frankly, I think the most obvious is that the 10-year yield has risen again in the United States.
- That said, this big candlestick suggests we might see a bit more trouble, but I don’t know if anything has changed long term.
Consolidation?
I believe we will continue to see a lot of consolidation at this point, and I think it makes some sense given how explosive the Bitcoin price has been in 2024. After all, the market has seen a lot of inflows over the past year, and I guess at this point every time Bitcoin drops a bit, traders are more likely to come in and start buying more. I believe there is a hard floor under here, but of course the question will be where exactly is it?
I think the accumulation is taking place right now, and it’s probably worth noting that the volume is down a bit, and that’s something that leads me to believe that interest has died down a bit in the short term. However, I see significant support in the $90,000 region, assuming we can even get down there. On the upside, I see a lot of noise around the $103,000 level and then again at the $109,000 level. I guess we have a scenario at this point where $110,000 is a big hurdle that will take a lot of work to get over. However, if we were to get further than that, it could open up a huge move to the upside.
This is my base scenario, although I think it will take some time for this to happen. I believe that Bitcoin will continue to grow in the long term, but we have a lot of things to do, one of which, of course, will be waiting to see what the new administration in Washington will do about crypto adoption.
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