Bitcoin Price Outlook – Bitcoin Drops on Friday

Bitcoin Technical Analysis

Bitcoin has fallen a bit during the early hours on Friday as we continue to see a bit of hesitation. That’s not really a huge surprise because while we have been rising as of late, we weren’t doing so with massive force and of course we have ran directly into the 50 day EMA. Furthermore, you have the $90,000 level above that offering resistance and I do think we’re in the midst of trying to form some type of consolidation pattern. So, at this point in time, if you are a shorter term trader, you are looking to go back and forth, with the floor being closer to the $75,000 level.

If you’re a longer term trader, then you’re looking at this as an area of potential accumulation, doing a little bit of dollar cost averaging. That’s what I have been doing in little increments. So I don’t really care what will happen with Bitcoin over the next few months. And with an extraordinarily volatile currency like Bitcoin, you have to approach it as such. You have to understand that it is going to be wild at times and therefore you have to take the emotion out of it. And one of the easiest ways is to simply dollar cost average in small bits and pieces.

That being said, if we were to break down below the $75,000 level, it’s very possible we could drop down to $60,000. In that area, I probably would double what I’m purchasing every week in Bitcoin just because I would get a better price. It comes down to believing that over time, and I do believe this, that the price of Bitcoin will continue to rally.

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