Bitcoin Price Outlook – Bitcoin Continues to See Consolidation

Bitcoin Technical Analysis

Bitcoin dropped a little bit during the early hours on Monday, but really at this point in time, I don’t read too much into it, mainly due to the fact that we are consolidating. That’s what this market typically does. It will shoot straight up in the air and then consolidate for much longer than you anticipate. Bitcoin’s very difficult to trade from a short-term perspective, mainly due to the fact that you don’t really know when the next surge higher or lower comes.

So, most people I’ve talked to, at least, tend to either dollar cost average or just buy and hold. Of course, a lot of Bitcoin is built around true believers and not skeptics like me, but I’m the first to admit that Bitcoin probably breaks $100,000 and goes higher. I don’t personally believe that it will ever be used for anything. I’ve seen nothing to convince me of this. However, that’s not what it is. It’s a speculation market, and that’s fine, there’s nothing wrong with that.

The trick with trading Bitcoin is you have to overlook the fact that there is so much in the way of rhetoric around it. Wall Street does have its ETF now, so at this point in time, they want it to succeed, so institutions will be involved. A short-term pullback from here could lead Bitcoin down to 90,000. It could even leave it down to the $80,000 level.

That would be roughly an 18% drop or so, which is pretty horrific for most assets, but for Bitcoin, it’s not unheard of at all. And that’s what I mean. It’s very difficult to trade this from a short-term perspective, but when you look at this chart, there’s absolutely nothing that says you should be short of this market. If you already have Bitcoin, then you’re probably looking at some sideways action as getting above the psychologically important $100,000 level will take some type of reason.

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