Bitcoin Price Outlook – Bitcoin Drops After Breakout

Bitcoin Technical Analysis

Bitcoin initially shot much higher during the trading session on Thursday but has since pulled back toward the $120,000 level. The market, of course, has been fighting this resistance barrier for some time, but the fact that we closed so high and so strong above the $120,000 level, I suspect this might be the beginning of the breakthrough that we’ve been looking for. We find ourselves dropping toward the $120,000 level again, which makes a certain amount of sense because it’s a breakout and then a pullback. Now the question will be, can we hold this area on a bounce? I think you have a lot of people willing to get into Bitcoin in this area.

The measured move from the consolidation would be somewhere around $130,000, which is not a huge surprise. Bitcoin tends to like those large, round, psychologically significant numbers anyway. So, I think it all ties together quite nicely. Not only did we have the breakout, but we also have the 50 day EMA that we can watch, although it’s down near $115,000 as a trend line. It’s basically operated as a trend line since the beginning of May. The market’s bullish, and there are no two ways to deal with it.

The only downside I see right now is that this time of year, volume is pretty weak on Wall Street. So maybe you have a lack of institutional buying. We’ll just have to wait and see. But it wouldn’t surprise me if we just kind of continued the same grinding, slightly positive action. I think that’s probably the case between now and maybe even the Federal Reserve meeting in September. Because after all, the Fed is in fact going to start loosening rates, that should help Bitcoin as well.

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