Bitcoin Weekly Price Outlook – Bitcoin Continues to Consolidate

Bitcoin Weekly Technical Analysis

The Bitcoin market has gone back and forward during the course of the trading week, touching the $100,000 level at one point. The $100,000 level has been a bit of a headline for Bitcoin, but whether or not it actually means anything remains to be seen. After all, it’s just a big number. You could have said the same thing about $70,000, maybe $50,000, maybe $25,000 and so on. Because of this, I am more or less on the sidelines as far as momentum is concerned. I think you’re probably going to have to work off some froth here and we may possibly even break back down below the $90,000 level.

But I think most people will look at that as a buying opportunity. I suspect that a lot of what you’re seeing here is just going to be based on the idea that the market is trying to work off some of that excess energy. Furthermore, you have to keep in mind that this past week featured Christmas, which obviously has an effect on all things financial and next week features New Year’s.

So, I’m not expecting much. I’m expecting sideways action. I’m expecting longer term believers to continue to accumulate here and I do believe that it is probably only a matter of time before the market breaks to the upside. The question at this point is whether or not we need to pull back and retest the previous consolidation near the $74,000 level. It certainly would flush a lot of the weak hands out of the market but that also would be a 25% drop or so, and therefore, I think it would be quite rattling for most people. Regardless, I don’t have any interest in shorting this market. I think you probably have more sideways than anything else.

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