Bitcoin Price Outlook – Bitcoin Continues to See Buyers on Dips

Bitcoin Technical Analysis

The Bitcoin market has gone back and forth during the course of the trading session on Friday, and it now looks to me as if the market is trying to sort out whether or not we can continue with this momentum or if it is simply a matter of going sideways and working off some of the excess froth. I do believe the froth needs to be dealt with and the fact that we are on holiday is actually a perfect time to do it.

The 50 day EMA and the $90,000 level underneath both offer support and reason for support. So, I suspect it’s probably only a matter of time before dips get bought into. If we were to break above the $100,000 level, then I think it opens up the possibility of a move towards the highs again. I do believe eventually Bitcoin goes higher, but it’s worth noting that we had expanded so rapidly that it’s almost impossible to fully anticipate that this market is just simply going to go straight up in the air forever.

Working off some of that froth, bringing in new buyers, that type of thing is what’s necessary. If we break down below the $88,000 level, I think that’s when we go looking towards the previous breakout. But right now, I suspect that we have a situation where given enough time, the buyers will return on each and every dip as traders are starting to accumulate more. With the inflation situation and the risk appetite situation in the first half of 2025 likely to be somewhat strong, I think that helps Bitcoin as well.

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