Bitcoin Price Outlook – Bitcoin Attempting to Find a Floor on Wednesday

Bitcoin Technical Analysis

Bitcoin has rallied ever so slightly during the trading session on Wednesday through the Asian and European sessions, and now it looks as if we are trying to find a little bit of footing here just above the $112,000 level. This is an area that previously had been a major barrier that I think is more or less a zone that extends down to $110,000. So, I think there are plenty of buyers underneath. All things being equal, it makes a certain amount of sense that this pullback offers some value that I think longer term traders are going to be looking for.

Keep in mind that some of this will come down to monetary policy and what the Federal Reserve is or is not doing. So therefore, the speech at Jackson Hole on Friday by Jerome Powell may actually end up moving Bitcoin. You should also keep in mind that Bitcoin is now a Wall Street asset and Wall Street, for the most part, is away for vacation. So that’s part of the malaise that we have been seeing.

We are starting to see a rotation on Wall Street out of tech stocks and into companies like the ones on the Russell 2000, the Dow Jones 30, those types of indices. So that does have a little bit of an influence here, as Bitcoin has a pretty strong correlation to the NASDAQ 100. None of this means that the trend’s over. It just means that we’re running into a little bit of a hesitant market. A bounce, a V shape if you will, is what I want to see to start buying again.

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