Bitcoin Price Analysis – Bitcoin Continues to Threaten Major Resistance

Bitcoin Technical Analysis

Bitcoin has pulled back just a bit during the early hours here on Wednesday as we continue to tussle with the $110,000 area. This is an area that although has been pierced once or twice, has fought the bulls.

That being said, this is a situation where the market continues to see buyers on dips. So, I do think it’s probably only a matter of time before we break out to the upside. But as things stand right now, I believe that the market’s most likely target is going to be the $120,000 level based on the $10,000 measured move of the last leg higher. This is a market that has Wall Street backing it now through an ETF.

So that creates a bit of demand whether or not retail traders are interested because of institutional traders and of course money managers who run some retirement funds. Ultimately, this is a market that I think will remain volatile, but it’s almost impossible to short at this point in time. And in fact, it’s not very easy to short Bitcoin period.

So, with that being the case, I look at this through the prism of a market that is probably going to do some work here to break above a significant resistance, but if and when it does, it opens up a fairly decent move. If we were to break down below the $100,000 level somehow, at that point, then I might reset and start to look for support near the $95,000 level, possibly even $90,000, but that seems very unlikely at this point considering that after the very impulsive move on Monday, we’ve had very little pushback. It’s more or less stagnant that I’m looking at.

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