Bitcoin Price Outlook – Bitcoin Continues to Drift Towards Support

Bitcoin Technical Analysis

The Bitcoin market has fallen pretty significantly during the trading session on Thursday, as we continue to look for some type of directionality. Now, having said that, you can make a strong argument for the possibility of a head and shoulders pattern up here. But really, at this point, I think it’s probably only a matter of time before I think we have to find some resolution to the noise that we are going through. The noise that we are going through is a direct effect of what had happened previously, of course, being the market going straight up in the air I believe $90,000 is the beginning of significant support down to the $88,000 level.

So while you can make an argument for a head-and-shoulders pattern I’m not as concerned about it as I would normally be, I just think there’s too much going on here for it to be an easy breakdown. That being said with the jobs number coming out on Friday, that will have a major influence on what happens with interest rates and if that ends up being the situation here where we get a sudden shock to interest rates, maybe they go higher, that could actually break Bitcoin down. Most people I know, though, that are trading Bitcoin currently are just accumulating little bits and pieces every time it pulls back. They’re not overly worried because they look out over the longer term.

Those trading short term though, are going to have to be very cognizant of this range bound action. If we were to break down below the $88,000 level, we could revisit the $74,000 level in order to have proof of concept of that being an area that the market will continue to pay attention to as it had been major resistance previously. So, we’ll see. At this point though, I think Bitcoin is more neutral and noisier than anything else.

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