Bitcoin Price Outlook – Bitcoin Continues to Consolidate on Wednesday

Bitcoin Technical Analysis

Bitcoin initially did try to rally a bit during the trading session here on Wednesday, but it looks like we just don’t have the proper momentum to get going. That’s not a huge surprise. We’re waiting on the Federal Reserve interest rate decision and statement as well as the press conference, which will have a direct influence on what happens with Bitcoin and perhaps more importantly, risk assets all across the board.

The 50-day EMA has acted like dynamic support, and it is hanging around the $103,250 level. So that might be something to pay attention to for a potential trade. But really at this point in time, I think we need to get through the central bank decision before we really get aggressive about anything. To the upside, we have the area between $110,000 and $112,000 as a bit of a barrier. If we can break that barrier, then the market is likely to go looking to the $120,000 level.

Breaking below the 50 Day EMA opens up a move down to the $100,000 level, which, of course, is a large, round, psychologically significant figure in an area that has already shown itself to be resilient more than once. So with that, I think you’ve got a situation where traders are just hanging around waiting for these big announcements to get out of the way and perhaps trying to determine whether or not we are going to grind sideways, or if we are going to finally break out and make a move to different areas in this market.

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