Bitcoin Price Outlook – Bitcoin Digesting Some Big Gains on Wednesday

Bitcoin Technical Analysis

The Bitcoin market has gone straight up in the air over the previous 24 hours, but during the day on Wednesday, it looks like we might be doing a little digesting. This does make sense because we are right around the $94,000 level, an area that was previously important from a support level, but it also was where we had a bit of a swing high. Now, do we go higher or lower from here? I do think that we are trying to grind higher. But we may need a little bit of a short-term pullback to make that happen.

I would anticipate a certain amount of interest near the $90,000 level for support in that environment. On the other hand, we could just continue to go higher. Certainly Bitcoin can throw a couple of strong candlesticks together, but I think it is going to be a lot of work to get above $100,000 in the short term, unless we either pull back and build up momentum or go sideways in order to work off some of the short-term froth.

Ultimately, Bitcoin is in a longer term uptrend, and it is worth noting that we sold off in Bitcoin before we did in the stock market. So, if the stock market starts going, specifically the NASDAQ, that will certainly help Bitcoin as well, but it has performed quite well through all of the chaos lately. I have to admit, it was a bit of a surprise. I think that in and of itself makes it somewhat bullish. At least it’s not as bad as so many other assets have been. Short-term pullbacks again, I think end up being buying opportunities, as that has been the case for a while. There is certainly going to be potential resistance here at 94,000 and then again at 100,000 after that.

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