Bitcoin Price Forecast – Bitcoin Drops Early on Tuesday

Bitcoin Technical Analysis

The Bitcoin market pulled back just a bit during the early hours on Tuesday as we continue to see a lot of noisy behavior in the markets overall. This does make a certain amount of sense because we have just got back from our holidays and therefore the market certainly looks as if we are in a situation where we’re trying to figure out where the next liquidity push is coming from. Now in Bitcoin, I think it’s coming from buyers and that’s what we saw during the trading session on Monday. A pullback at this point could test the $100,000 level and if that holds, that would be a good sign that we’re probably going to go back towards the highs again.

Even if we break down below there, I don’t have any interest in shorting Bitcoin and I believe that there is plenty of support near the 50 day EMA underneath. All things being equal, this is a market that I do believe is consolidating, but it’s positive, it’s leaning to the upside. So, you certainly don’t want to short this market.

Only the truly reckless would be buying and selling back and forth. What most people are doing is probably buying dips, taking a little bit of profit, letting it fall, buying dips, taking a little bit more profit, et cetera. A lot of longer-term traders are using this as an accumulation area, which makes a lot of sense to me as well. We had plenty of time during 2024 when you could have done that and we may be entering another phase like that now that the pro-crypto Trump administration is taking over. While that got a lot of people excited, they haven’t actually done anything yet. So, it could be a wait and see type of scenario. Regardless, this to me looks like a very bullish market that’s just taking a bit of a breather.

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