Bitcoin Price Outlook – Bitcoin Continues to Pressure Upside

Bitcoin Technical Analysis

Bitcoin initially fell during the early hours on Tuesday fairly significantly but found buyers right around the $101,000 level to turn things around and show that there is still stubborn buying pressure in this market. If the market were to break higher from here, the $110,000 level continues to be a bit of a barrier that I think will take some type of external factor to get going and jumping above. The Bitcoin market has been extraordinarily strong over the last three weeks, maybe four weeks, as it led Wall Street to recovery. Keep in mind that Bitcoin is essentially an ETF now.

I understand all of the philosophical arguments for how Bitcoin is better than anything else, but the reality is it’s traded as an ETF. Institutions are now heavily involved in that ETF, and therefore it is going to behave like a Wall Street asset, like it or not. As Wall Street recovers, so will Bitcoin and vice versa. So, if we see some type of massive sell off on Wall Street, particularly in technology related areas, such as the NASDAQ 100, then you will see Bitcoin suffer as well. The $100,000 level should be an area of support.

If the market breaks down below there, then you could go looking at the 50 day EMA all the way down at the $93,000 level. If we can break higher and clear the $110,000 level, then Bitcoin is free to make its next leg higher, which could end up at the $120,000 level pretty quickly. Regardless, this is a market that I think you have to look at short term pullbacks as buying opportunities that offer value.

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