Bitcoin Price Outlook – Bitcoin Continues to See Same Barrier

Bitcoin Technical Analysis

Bitcoin has rallied ever so slightly during the early hours on Thursday, as we continue to just simply chop back and forth and try to build up enough pressure to break out to the upside. The $120,000 level of course has offered a significant amount of resistance. And if we can break above there, then I think we could eventually go towards the $130,000 level.

Short term pullbacks I think continue to offer buying opportunities. But we are in the midst of forming a bullish flag, which in and of itself tells me that eventually we should probably go higher. Even if we broke down below this part of the flag that we’ve been in, the 50 day EMA sits at the $113,000 region offering support. And then after that, we have the $110,000 left.

Ultimately, this is a market that I think every time it dips, there are buyers out there willing to get involved to pick up cheap Bitcoin, but we just don’t have the external influence to get the thing going. During the Federal Reserve interest rate decision, there was hope that perhaps they would sound a bit more dovish than they did. And unfortunately for Bitcoin holders, they did not seem overly dovish. With that being said, the market is likely to continue to just wait for some type of bullish catalyst.

Remember, Bitcoin was born out of the whole loose monetary policy regime, and we are not in one. So, the fact that it has continued to rally is rather impressive, but it doesn’t have that fuel behind it. Furthermore, it’s the middle of summer and trading volumes do tend to drop overall on Wall Street, and Wall Street of course is heavily influential in what happens with Bitcoin from here on out, so we may just have more sideways action in the short term.

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