Bitcoin Price Outlook – Bitcoin Falls Hard in Early Tuesday Trading

Bitcoin Technical Analysis

Bitcoin has plummeted during the trading session on Tuesday, as we continue to see a lot of noisy behavior overall. That being said, this is a market that I think you have to look at through the prism of testing the very bottom of support. The 200 day EMA sits just below and that of course will attract a lot of attention in and of itself, but we’ll have to wait and see whether or not that holds.

So far, it looks like it’s trying to and therefore, I do believe that this is still a market that you need to be a buyer of, not a seller of, but it’s clearly gotten pretty ugly in the last couple of days. If we break down below the 200 day EMA, I think that opens up a move down to the $75,000 region, where we had seen a lot of resistance previously. So, I would anticipate that there is market memory in that neighborhood.

On the upside, if we can recapture the $90,000 level, then I think we could go look into the 50 day EMA, but whether or not we can actually pick up any momentum is a completely different story. After all, we have rallied twice on two different occasions. The first one, of course, was Wall Street ETF being approved. The second one is the Donald Trump administration being elected. Well, they haven’t done anything crypto related yet. Not that it’s been that long, but I think that’s what the market’s waiting on. They’re waiting to see whether or not the United States government will do something with crypto.

It’s also worth noting that there are economic fears out there and Bitcoin is not something that you buy in a lot of economic fear. So, it does make a certain amount of sense that Bitcoin is struggling a bit. At this juncture though, I don’t think it’s time to start selling. I think buying the dip continues to be the case. It’s been that way for a while now. And if we can re-enter the consolidation phase, which we’re basically there now, then I would have to assume it’s going to be more of the same.

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