Bitcoin Forecast: If You Own Bitcoin This Rotation Causes Concern

Recent downside price rotation in Bitcoin has caused quite a bit of concern for Crypto traders and investors. This recent breakdown move represented a failure of continued strength and has, and still is, testing critical support for a bottom.

There are many external factors that are driving the demand and price for Bitcoin currently. The most recent news is that Crypto ETFs may run into some regulatory issues and that fears of a continued government crackdown may crash prices. Demand is still strong from believers in Blockchain and Cryptos, though, and we believe this contraction in price may continue for a few months.

As you can see from this chart, a Pennant/FLAG formation is setting up that prompts us to believe we could see Bitcoin prices rotate back to near the $15,500 levels before stalling again. This Pennant formation is predicting an overall tightening of prices through early February, yet our belief is that upside prices may prove to be the successful trade as demand and integration of Blockchain trading continues to grow rapidly worldwide.

Volatility continues to be an issue for Bitcoin investors. We don't believe this will decrease over the next 3~7 months. Bitcoin traders are loving this volatility. I recently spoke with a close associate of mine that stated he is able to trade +6~8% swings in Bitcoin regularly with his strategies. The great thing about trading cryptocurrencies is that they are very pure in their trading. Meaning very little manipulation, and it’s strictly driven by volume and emotions. At this point in the growth stage of Blockchain the bias remains to the upside with the expectations of higher prices over time to continue. If you are looking for an easy way to buy and sell bitcoin I use this simple crypto wallet called CoinBase.

As Bitcoin continues to find its roots in economic function, the Blockchain technology continues to be validated and adopted by many. The CryptoCoins themselves may become more valuable as a trading instrument as well as a futures instrument. When the ETFs hit the markets, we believe BlockChain and Cryptos will become well entrenched in society and will establish a base valuation (of sorts).

Be sure to look at this Infographic: 67 INSANE FACTS ABOUT BITCOIN

In the meantime, be prepared for some wild volatility and rotation. The lower support levels, as shown on this chart, are key to the upside potential of Bitcoin. If that level is broken, then we could see a dramatic collapse in price to test the $4000 level. Until then, we are within an $8k~10k rotational range that will continue to tighten as the Pennant formation constricts. It should make for a wild ride – either way.

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