Bitcoin Price Outlook – Bitcoin Continues to Go Sideways

Bitcoin Technical Analysis

The Bitcoin market has seen itself rally slightly during the early hours on Wednesday as we continue to just grind it back and forth. At this point, I think Bitcoin is trying to sort out whether or not it can take off to the upside. And I do think it will eventually, but as things stand right now, the 50-day EMA has offered a bit of a barrier, and breaking above that barrier opens up the possibility of taking on the $100,000 level followed by the $110,000 level. Underneath, I see the $90,000 level as being supportive all the way down to the $88,000 level.

In general, this is a market that I think most people that are heavily involved in Bitcoin are just accumulating and there really isn’t much else to do. And there seems to be no real rush. This reminds me a lot of last year when we did almost nothing for about seven months, and really, I think we’re in the same type of malaise. It’s not that there’s anything bad out there, except for maybe monetary policy coming out of the Federal Reserve. It’s just that there’s nothing really good either. It’s just a bit of a holding pattern.

For those who believe in the longer term viability of Bitcoin, this is what is known as a buying opportunity as you can buy a little bit with your paycheck every week or every two weeks or however often you get paid. And people accumulate that way. And then as we break to the upside, they find themselves becoming a bit wealthier. That being said, we could break down below the $88,000 level and that could open up a drop down to the $75,000 level where we had seen so much resistance previously. Quite frankly, in that environment, I’m okay with that as well. I’ll just buy a little bit more. I have no interest in shorting Bitcoin, although I don’t necessarily think we have anywhere to be.

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