Bitcoin Price Outlook – Bitcoin Continues to Build Inertia

Bitcoin Technical Analysis

Bitcoin has pulled back ever so slightly during the early hours on Tuesday as traders continue to just burn off some of this excess froth that we had seen in this market reaching all the way toward the $112,000 level before pulling back. I think at this point in time, you’re looking at a situation where we are just going to have to burn off some of this energy that we used to get here. Ultimately, I do think you have a situation where Bitcoin breaks out, but we have some way to go before that really starts to take effect. This could be a while in the making.

I think we need some type of catalyst, or we just need a few weeks going sideways. The $100,000 level underneath should continue to offer psychological support, if not structural support, as the 50-day EMA is sitting just above it. The market will continue to be very noisy in general, but I also recognize that we have a scenario where traders certainly want cheap Bitcoin. And every time we pull back a little bit, it does seem like there are buyers willing to get into this market.

So, I remain optimistic. I don’t have any interest in shorting this market anytime soon. And I do think that given enough time, we will probably break out above the $112,000 level and go looking at the $115,000 level. Again, I’m bullish on Bitcoin, and I look at dips as potential buying opportunities. I have no set up for shorting at the moment in this market. The uptrend is still very much in play.

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