Bitcoin Price Outlook – Bitcoin Continues to Grind

Bitcoin Technical Analysis

The Bitcoin market has dropped a bit in the early hours of Thursday as we continue to see a lot of back and forth just below the crucial $106,000 level. Remember, the $106,000 level was an area that caused a bit of a double top previously, so it does make a certain amount of sense that we would see hesitation in this region. At this point, I think we are more or less going back and forth between $106,000 at the top and $100,000 at the bottom. This area of sideways consolidation does make quite a bit of sense, considering that the market has gotten so frothy that, quite frankly, this is a scenario where we need to work off some of this excess.

If we can, and we eventually break above the $106,000 level, then you have to have a situation where a lot of pressure will come into play right around the $110,000 level. If we can break above $110,000, then that kicks off the next leg higher. Any pullback at this point that breaks below the $100,000 level would get me interested in buying.

But I think you would have to wait until you get closer to the 50-day EMA, a technical indicator that Bitcoin has a long history of following. That is currently right around the $94,000 level, which makes sense, there’s a cluster between $94,000 and $96,000 that I think could offer support as well. This is an area of value that I think a lot of people will be watching very closely.

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