Bitcoin Price Outlook – Bitcoin Continues to Respect Range

Bitcoin Technical Analysis

Bitcoin dropped a bit during the early hours on Tuesday, but has since shown signs of life as the 50 day EMA came into the picture to offer support. By doing so, it looks like the market is likely to at least attempt to go to the upside again with the $120,000 level a target. The $120,000 level has been a massive resistance barrier previously, which of course will bring a little bit of market memory into this area.

If we were to drop from here and break down below the 50 day EMA, then it’s possible that we could drop towards the $110,000 level. The $110,000 level is an area that previously had been resistance. So, it should, at least in theory, be support at this juncture.

Bitcoin is essentially trying to do everything it can to stay afloat, but we also have a lack of volume at the moment, as well as interest overall. Keep in mind that August is generally a very quiet month for Wall Street, which has a major influence on Bitcoin at the moment. So, I think we’re probably still stuck in this holding pattern. I believe that $110,000 should continue to support Bitcoin. So, if we break down below there, I’ll have to reassess some things, but as things stand right now, I think this bounce makes a certain amount of sense, but I don’t know if we have the external drive right now to send Bitcoin above the $120,000 level. It just remains in consolidation.

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