Bitcoin Price Outlook – Bitcoin Bounces at the 50 Day EMA

Bitcoin Technical Analysis

Bitcoin initially fell during the early hours of Tuesday trading, but it has found a bit of support in the form of the 50 day EMA. The 50-day EMA, of course, is an indicator that a lot of people will be paying close attention to as it is basically acting like a trend line most of the year. Short term pullbacks are still possible, but I think those pullbacks offer the possibility of buying Bitcoin on the cheap, as it were. After all, we’re in a massive uptrend and of course Wall Street now has Bitcoin in an ETF, so Wall Street isn’t going to let it fall too far, at least not yet, as it is basically Wall Street’s new toy. And at this point in time, it’s also worth noting that the 50-day EMA sits at the psychologically important $115,000 level, so we’ll have to watch that and make sure it is something that we pay attention to.

If we were to break down below the lows of the last couple of days, it does open up the potential for a move down to the $112,000 level, maybe even the $110,000 level. On the other hand, if we rally, then we’ll be paying close attention to the $120,000 level, which had been very difficult to break. And actually, once we broke above it, we saw the market get slammed. The US dollar is losing a little bit of strength during the early hours, so that might be part of what’s helping Bitcoin, or it might just be a simple buy on the dip strategy playing out. Either way, I remain bullish on Bitcoin. I just don’t know if we have the momentum to clear the $120,000 level just yet, as this time of year is typically somewhat thin with volume anyway.

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