Bitcoin Price Outlook – Bitcoin Continues to See Buying on Dips

Bitcoin Technical Analysis

The Bitcoin market initially pulled back just a little bit during the trading session on Tuesday but has since rallied a bit as we continue to just bounce around in what I think of as about a $20,000 range. The $90,000 level underneath is a significant support level, with the 110,000 level above offering significant resistance. If we can break above there, then I think we will use the move above the $110,000 level as an opportunity to truly launch higher. That being said, it doesn’t surprise me that we are somewhat sideways as we’ve had a couple of huge moves over the last 12 months or so.

In very short order, we went from $74,000 to $109,000, and since then we’ve been working off a lot of that excess. I do think at this point in time, anytime Bitcoin pulls back, there will be plenty of value hunters out there willing to get involved and try to pick up cheap coins. Again, if we break above the $110,000 level, I think it kicks off the next move, probably to $130,000 based on the measured move of the consolidation that we are currently in.

A pullback towards the $100,000 level continues to attract attention, but even if we break down below there then I like the idea of looking at the 50 day EMA as a potential support level as well. In general, I think you’ve got a situation where the market continues to be buy on the dip and join the rip, if we get that opportunity. I have no interest in shorting Bitcoin.

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