Bitcoin Price Outlook – Bitcoin Attempts to Rally on Monday

Bitcoin Technical Analysis

Bitcoin rallied slightly in the early hours of Monday, bouncing from the $80,000 level. That being said, there’s nothing really impressive about this chart right now, and I think we are in a very messy consolidation area. The area seems to be widening a bit, but it could extend all the way down to the $75,000 level. After all, $75,000 was a major ceiling, or at least an area of a ceiling, for months during the previous year.

We have essentially given back probably 75% or so, of the Trump election gains. And that does make a certain amount of sense because really nothing’s been done about crypto. The idea of a strategic crypto reserve has come and gone with traders learning that it is going to be using seized assets. So, with that being the case, it’s not the bump that they were hoping for.

Furthermore, you also have to keep in mind that the risk appetite is really starting to fall apart right now, so that of course works against the idea of Bitcoin as well. Remember, the only thing the Bitcoin really seems to enjoy is cheap and easy money and while we may get that down the road this year, the question is going to be why is it going to be because there is some nasty recession going on. Nonetheless, Bitcoin probably won’t melt down like it has in the past because after all, Wall Street has its fingers in it now.

So, I think of this more or less like an index and in fact, you can pretty much think of it as the NASDAQ 100. It’s not a decentralized currency, it’s not going to change money, it’s not going to do anything, but play a prominent role in the casino that is Wall Street. Once you understand that, you understand that it does have a little bit of a buffer underneath, this isn’t to say it can’t go down and in fact it could drop by 20% but it is better supported than it once was. So, I don’t think we’re going to enter the same type of crypto winter that we had in the past. Most people I know that are believers about Bitcoin are using these pullbacks as opportunities to buy little bits and pieces because it’s a longer term investment.

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