Bitcoin Price Outlook – Bitcoin Continues to Struggle Ahead of Jackson Hole

Bitcoin Technical Analysis

The Bitcoin market initially did try to rally on Friday but has given back gains rather rapidly as we continue to see selling pressure overall. This is a market that I think will continue to pay close attention to the $112,000 level as potential support and then it probably extends down to the $110,000 level. That is a two thousand dollar buffer if you will of potential support. So, I’ll be watching this level rather closely because we should see Bitcoin bounce sooner or later.

If it breaks below the $110,000 level. Then I think you’ve got a situation where the $104,000 level could be targeted based on the 200-day EMA. Conversely, if we were to turn around and break above the 50-day EMA, then I think you’ve got an opportunity for Bitcoin to go looking to the $120,000 level, a level that I do think we will find sooner or later.

The real question right now is whether or not the support holds for the short term. Furthermore, you also have to pay attention to what Jerome Powell says later in the day from Jackson Hole with his speech. It will give us heads up as to how the monetary policy at the Federal Reserve will be going forward, and that of course has a major influence not only on the US dollar, but risk appetite in general, so this directly correlates to what happens in Bitcoin. Beyond that, you have to worry about the lack of volume. Right now, is vacation season on Wall Street anyway, and as Bitcoin is a Wall Street asset now, that has a major influence on what happens here. I’m bullish, but I also recognize that we’re in an area that we may be struggling for a little bit.

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