Bitcoin Price Analysis – Bitcoin Continues to Work Off Massive Momentum

Bitcoin Technical Analysis

Bitcoin has really not done much for the session on Wednesday as we are just simply consolidating just below the $110,000 level. The $110,000 level, of course, is an area a lot of people will be paying close attention to as it was the scene of a double peak previously that sent this market falling apart. That being said, over the last month or so, we have rallied by about 40% and with that being the case, it makes a certain amount of sense that we take some time to digest these gains.

Short-term pullbacks should see plenty of support, especially near the 50-day EMA and the $100,000 level. As long as we can stay above there, I really don’t think anything changes and simply at this point in time are trying to work off some of that excess froth. Bitcoin, of course, breaking out to a fresh new high could kick off the next move and a bit of a FOMO trade to reach towards the $115,000 level.

If we break down below the $100,000 level, then I think that will change a lot of things and we start to look at the $90,000 level as a potential support area, especially as the 200-day EMA is sitting there. That being said, the market is likely to continue to favor upward momentum, so given enough time, I fully anticipate that Bitcoin will break out to the upside. But right now, I just think we’re trying to deal with the fact that we got to this level so quickly.

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