Bitcoin Price Analysis – Bitcoin Continues to See Choppy Behavior

Bitcoin Technical Analysis

Bitcoin initially fell during trading here on Friday but has turned around to show signs of life. In this environment, it looks very like a market that’s trying to get back to the $110,000 level, which of course was an area of importance. So, I do think that you have a situation where we are just simply continuing the overall consolidation in what probably should be thought of as more or less a range of sorts. So somewhere between $112,000 above and $106,000 below, there’s an equilibrium of price.

Bitcoin has been very bullish over the last several weeks and therefore taking a bit of a break here does make a certain amount of sense as the market has been so overextended. And in fact, even if we pulled back all the way to the $100,000 level, I think that doesn’t change too much in this market because quite frankly, it is a market that has been so strong that it’s no surprise people may be wanting to take a little bit of a break.

Furthermore, you have to spend some time up here in order to entice buyers because they need to know that the market’s comfortable with $110,000 as your median price. If we pull back, then you have value hunters coming back in and the $100,000 level does make a certain amount of sense, considering that the 50-day EMA is there and rising. So, all things being equal, I think this is either a buy on the dip scenario or just simple sideways trading to work off froth.

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