Bitcoin Price Outlook – Bitcoin Continues to Respect Resistance

Bitcoin Technical Analysis

Bitcoin has fallen a bit during the trading session here on Tuesday in the early hours and now looks like it is going to continue to respect the overall consolidation range that we have been in. The $110,000 level above, of course, is an area that has been important multiple times. And the $100,000 level underneath has been massive support multiple times as well. So, with that being said, I think it makes a lot of sense to simply sit here and trade back and forth.

I don’t have any interest in trying to get too cute here. I think you have a scenario where we had rallied so much that it was only a matter of time before we had to perhaps slow down and work off some of the excess froth. That is quite typical of Bitcoin. It will make a massive move and then put everybody to sleep for a few months and that’s just really what we’re doing here.

So ultimately, I think you look at dips as potential buying opportunities and I think you also have to look at this through the prism of being very patient. You have to look at it longer term. Now, if you are a short-term trader, there is the possibility of using a range-bound system on shorter timeframes using the same levels as support and resistance, but we are sitting right around the $106,000 level, a minor area of importance. And then underneath there, we have the 50 day EMA that comes into the picture as well. The big picture is about $10,000 worth of trading range at the moment.

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