Bitcoin Price Outlook – Bitcoin Continues to See Pressure

Bitcoin Technical Analysis

The Bitcoin market fell a bit during the early hours on Wednesday as we have reached the 50 day EMA only to turn around and bounce a little bit. But I think at this point in time, the entire world is watching the 10-year yield in the United States as it is right around the 4.70 level. All things being equal, this is a market that I think continues to watch whether or not cheap and easy money is the way, or do we have to start selling risk assets?

You could make an argument for a bit of a head and shoulders pattern forming. I mean, you would have to be a little bit creative with the drawing, but you could make that argument, and if that isn’t back the case, we could see this market plunging towards $75,000. That isn’t my base case scenario, but it’s something that’s on the chart, so we have to be aware of that.

I do believe that it’s more or less a buy on the dip type of opportunity, and the last two days might be that opportunity. If we break down below the 50-day EMA, then the next support level is somewhere near the $90,000 level. To the upside, if we can break above the $100,000 level again, then it looks like Bitcoin would go flying back to the $109,000 region.

I don’t think that happens either. I think we’ve got quite a bit of sideways action ahead of us as we digest the latest launch higher in this asset. And I believe that longer term players are just simply accumulating little bits and pieces.

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