BTC/USD Forecast Today - 12/24: Bitcoin Slumps (Chart)

(MENAFN- Daily Forex)

• During my daily analysis of the Bitcoin market, it initially looked like we were ready to go higher again, but we have since given back those gains and dropped to reach down toward the 50 Day EMA.
• This is interesting because the lows of last week are here as well, so I think you have a situation where we are trying to make sure there is a significant floor underneath before we go higher.
• Furthermore, you have to ask questions about liquidity and whether or not people are putting serious money to work right now, as Christmas is on Wednesday.

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While I know the crypto markets are open 24/7, the reality is that there are times where becomes dangerous to get too big. It would not surprise me at all to see people pushing Bitcoin around during these times, as the markets are fairly easily manipulated. That's been the case in the past, but it's probably worth noting that institutions are now involved, so that might help keep some of that nonsense down.

As things stand right now, I think there are plenty of people interested in this market, but we need to pay close attention to the area between $88,000 and $90,000. This is an area that needs to be held as support, or we will see Bitcoin correct fairly significantly. In that environment, it does not take a lot of imagination for traders to think that Bitcoin could drop to the $80,000 level, possibly even the $74,000 level, which is where we had broken out of to get up here in the first place.

I think the next few weeks are going to be somewhat difficult to get excited about in this market, so it comes down to your timeframe. If you are somebody who truly believes in Bitcoin and wants to hold it for the longer term, these dips offer opportunities to buy more. If you are a trader, you may find yourself somewhat frustrated as we don't have any real catalyst to move one direction or the other.

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