Bitcoin Price Outlook – Bitcoin Pulls Back a Bit on Tuesday

Bitcoin Technical Analysis

The Bitcoin market has pulled back a little bit during the early hours on Tuesday, as we have perhaps gotten a little overstretched. And I think that’s a fair point. We shot straight up in the air over the last week or so. With that being the case, I think you have to look at this through the prism of a buy on the dip type of opportunity. If we get anywhere near the $75,000 level again, it’s very likely that traders will jump in and pick up Bitcoin.

Keep in mind that Bitcoin is also an ETF on Wall Street. So, because of this, I think you’ve got a situation where traders are probably just going to try to keep it afloat anyways because of all of the inflows into the ETF. We have been consolidating since February and now have broken out again. Based on the measured move, we could be looking for Bitcoin to go to about $98,000.

Whether or not it happens quickly remains to be seen, but now that we have taken off again, it is going to be a buy on the dip scenario. It does tend to be very impulsive. You get an impulsive run, and you go sideways. You get an impulsive run, and you go sideways again. So, this is just more of the same action. It certainly looks as if the area around $90,000 is going to cause some little bit of resistance. I think in the longer term we will go above there as well.

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