Bitcoin Price Analysis – Bitcoin Continues to See a Ceiling on Tuesday

Bitcoin Technical Analysis

Bitcoin has pulled back just a bit in the early hours of Tuesday, as it looks like the barrier to the upside is in fact trying to hold. If we can continue to go higher, it is the $112,000 area that was the recent all-time high in this market, which obviously, if we were to break above there, that would get a lot of people interested yet again in a bit of a FOMO trade. Short-term pullbacks would be anticipated, but I also think they offer plenty of opportunities, as there’s really nothing on this chart to suggest that we should be selling Bitcoin.

Certainly, this is a buy on the dip mentality, and obviously, we are just pushing to the upside. Now that Wall Street has an ETF controlling huge chunks of Bitcoin, that means this will rise and fall more likely than not with the attitude of the stock market. That being the case and the fact that the stock market has really started to shoot to the upside, it does make a lot of sense that Bitcoin is right there with it. In fact, Bitcoin led the stock market lower this time, which was a new one for me as a trader. But obviously, we are in a completely different dynamic with BlackRock, for example, owning so much Bitcoin.

The measured move would be for the market to go looking at the $145,000 level based on the pullback and the bounce over the longer term. In the short term I think if we break out to the upside, you’re probably going to be paying a lot of attention to a potential move to the $120,000 level. If we were to break down below the $100,000 level we might have to reset and find support underneath but even then, I don’t think I would get short of this market.

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