Bitcoin Price Outlook – Bitcoin Continues to Grind

Bitcoin Technical Analysis

Bitcoin has initially tried to rally a bit during the early hours on Tuesday, but it looks like the 50-day EMA is sitting there and offering a bit of resistance. All things being equal, markets continue to look at the $90,000 level underneath as a major floor. And with that being the case, I think you’ve got a situation where traders are just simply looking to buy on the dip. We have been consolidating for a while, but there is a serious lack of momentum at this point. And therefore, you need to be very cautious about piling in right away. I think people are just simply accumulating in little bits and pieces on dips.

And with that being the case, the market I think stays in this pattern until we get some type of fundamental reason for Bitcoin to start moving. Right now, I think everybody’s waiting to see what the US government is going to do as the Trump administration is somewhat pro crypto, but they really haven’t done anything yet.

That being said, we’re only three weeks into his administration and obviously there are a lot of things going on in the world as it is. And crypto may not be in the forefront of everybody’s mind at the moment. If we do break down below the 88,000 level, then I think you’ve got a shot at going back down to 75,000. But right now, I am more inclined to buy dips in small increments and accumulate for the next leg higher. If and when we break above $110,000, that would signify the next leg higher. And I think at that point, we will probably go looking at the $130,000 level based on the measured move.

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