Bitcoin Price Outlook – Bitcoin Continues to See a Barrier

Bitcoin Technical Analysis

Bitcoin fell a bit during the trading session in the early hours of Friday, as there would have been a lack of volume and of course, lack of interest in trying to buy the market at the extreme top of what is a very well-defined consolidation range. Quite frankly, it looks like the $110,000 level offers a barrier. And I think that barrier extends to the $112,000 level, with the $100,000 level underneath offering support. All things being equal, Bitcoin had shot straight up in the air for a while and then spent a couple of months going sideways. And in fact, if you look at the gold market and the Bitcoin market, they’re essentially the same thing.

So, I think what we’re moving on to is Federal Reserve interest rate expectations. We have seen a little bit of back and forth with that, but I think ultimately if we pull back from here, there should be plenty of buyers, especially near the 50 day EMA, near the $105,000 level, assuming we even go that low. If we can break above the $112,000 level, then I would anticipate that Bitcoin probably has some momentum behind it and people will be jumping in, and the measured move at that point in time is essentially $120,000 as we have been consolidating in a $10,000 range.

I have no interest in shorting this market. I do think that eventually buyers will come back, but you want to see a drop and then a bounce. So, you can at least get on the right side of the V pattern in order to take advantage of cheap coins.

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