Bitcoin Price Outlook – Is Bitcoin Still Consolidating?

Bitcoin Technical Analysis

The Bitcoin market rallied a bit during the early hours on Thursday as we continue to see a lot of noisy behavior, bouncing from the crucial 50 day EMA. I think at this point in time, we have a situation where we are trying to sort out some type of consolidation range perhaps between the $90,000 level and the $110,000 level. So, this looks a lot like a market where we are just simply going to go back and forth and on short term pullbacks will continue to attract a certain amount of attention.

But we also have to keep in mind that there’s a certain lack of volume this time of year, just simply digesting the massive gains that we had previously this year, if we were to break down below the $88,000 level, then it could really start to break things apart and perhaps send this market down to the $74,000 level where we had previously seen a lot of resistance. And at that point, I would probably get much more aggressive.

However, I don’t really think Bitcoin’s likely to break down. I think we’re more likely to see what we saw earlier in 2024 where the market just went back and forth trying to digest all of that inflow and see what the next catalyst is. Furthermore, we have the Donald Trump administration entering the White House, which should, at least in theory, be good for crypto, but they really haven’t done anything yet. So, I think it’s a wait and see type of market. I would anticipate that there is a lot of accumulation going on right now.

For a look at all of today’s economic events, check out our economic calendar.