Bitcoin Price Outlook – Bitcoin Continues to Look Strong but Tired

Bitcoin Technical Analysis

The Bitcoin market initially shot higher, breaking towards the $106,000 level before giving back those gains in early trading on Monday. I think what we have here is a situation where every time this market pulls back a bit, there are buyers, and we are trying to squeeze to the upside. The $100,000 level should cause a bit of a reaction. The $95,000 most certainly will cause a bit of a reaction in the way of support. So, I think if we do pull back from here, and that makes a certain amount of sense, you have a situation where traders are going to come in and try to pick up cheap Bitcoin.

We are squeezing our way higher. That’s nothing new for this market. It’s done from time to time. For example, in 2023, about the same time of year, we were squeezing, squeezing, pulling back, and then launched. We may be getting ready to do something like that, but keep in mind that this is a market that, at the end of November, was down at $69,000, and we’re now right around $104,000. So, the move was insane. It’s been massive and the market will have to attract new money, and new money will have to have a reason to put money to work at these high levels.

Because of this, I do like the idea of buying pullbacks and we even are starting to get a little bit of a technical signal that might very well be the case. There is pretty significant divergence on the relative strength index between that and price. So perhaps a pullback, but really at this point in time, I don’t see how you short this market, assuming you even have the ability to. Looking for a 10 or 12% pullback? Maybe that happens between now and the end of the year or early next year, but I can almost assure you that it’s very likely there will be a lot of people thinking the same thing and that’s why I think pullbacks are probably somewhat limited.