Bitcoin Price Outlook – Bitcoin Continues to Recover

Bitcoin Technical Analysis

Bitcoin has rallied a bit during the early hours on Monday as we continue to see the US dollar get hit hard. With that being the case, Bitcoin I think is even starting to join the parade as it were, as it looks like we are likely to see the market try to reach the $90,000 level. If we can break above the $90,000 level, then it opens up a much bigger move. But as things stand right now, I think you’ve got a situation where Bitcoin just simply is still trying to reach towards the top of overall consolidation and test that area, but it doesn’t necessarily mean that we break out.

Short-term pullbacks are certainly very likely, and I think at that point in time, the 50-day EMA and the 200-day EMA could come into the picture to offer support. Anything below there, then we could drop as deep as $75,000 and still be in the same range. I don’t necessarily think we would drop that far, but it is something that could very well happen.

If we break above that $90,000 level, the so-called measured move is going to be for a move to right around $105,000 based on the rectangle we would be breaking out of. Some people have looked at this through the prism of some type of inverted head and shoulders that we have already broken out of.

But really at this point in time, I think you’ve got a situation where pretty much everything that can be thrown at Bitcoin from a risk perspective already has been thrown at it. So, it has been somewhat interesting to watch how Bitcoin has stabilized while the rest of the financial world seems to be struggling overall. Perhaps the worst of the selling in Bitcoin is over and now we’ll start to look for people adding to their positions for a longer term move.

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