Bitcoin Price Forecast – Bitcoin Continues to Trade in a Range

Bitcoin Technical Analysis

The Bitcoin market has pulled back just a bit in the early hours of Thursday as we continue to see quite a bit of noisy behavior, and I do think at this point we are a little overstretched. I would look to certain indicators for ideas as to whether or not it’s time to pull back. And for example, when you look at the relative strength index, while it’s not necessarily in the overbought area, it is getting fairly close to it and it is rolling over.

That doesn’t necessarily mean anything other than we may need to pull back in order to find buyers. And I think that’s actually what you’re looking at here. Bitcoin has been sideways for almost the entire year. And I don’t necessarily think that’s going to change. I do think there are plenty of buyers underneath. It’s just, there isn’t a whole lot of excitement about Bitcoin anymore. The shiny new toy that Wall Street has ended up being somewhat of a dud, at least so far.

If the market can break above $74,000, that would obviously change things, but right now there are a lot of questions as to whether or not the Federal Reserve can loosen monetary policy as much as people had hoped. And if it can’t, that actually works against Bitcoin. Remember, Bitcoin is born of the idea of limited money, sound money, as opposed to fiat currencies, and if fiat currencies aren’t being printed wildly like people had anticipated, that makes Bitcoin a little less attractive because quite frankly, you can’t really use it for anything.

So, at this point in time, I think we remain range bound. I think this pullback does end up being bought into, especially near the 50 day EMA and the $62,000 level. Again though, we could break higher and if we do reach $70,000, we’ll attract a lot of attention as a potential target or resistance.

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