Bitcoin Price Outlook – Bitcoin Continues to See Pressures

Bitcoin Technical Analysis

The Bitcoin market rallied just a bit during the trading session on Friday, but you can see that the candlestick from Thursday was pretty horrific. So, with that being said, I think you have to understand that it’s going to take a lot to get rid of that damage. That’s not to say the Bitcoin can’t do it. Obviously, it can, but that was a horrible turnaround during the Thursday session.

If we break below the bottom of the Thursday candlestick, somewhere right around $117,300, we could see Bitcoin fall to test the 50-day EMA. I’m not suggesting that Bitcoin is going to enter a downtrend or that Bitcoin is going to sell off quite drastically, but I am suggesting that a lot of damage was done on Thursday. And this tells me that we may not be ready to just take off to the upside.

A lot of this will come down to your timeframe. Obviously, if you’re a longer term holder, none of this really bothers you. You’ve seen much bigger shots across the bow, but if you are more of a shorter term type of trading person who goes in and out of the market, this is a time of caution. You should also keep in mind that this time of year is typically very thin for most assets on Wall Street and Bitcoin is a Wall Street asset. It’s an institutional asset now, so it follows all the same rules as indices and things like that. So we have seen some really weird moves in the indices and we’ve seen some really weird moves in Bitcoin where it suddenly sells off and then turns right back around. It’s a lack of volume, so be cautious.

For a look at all of today’s economic events, check out our economic calendar.