Bitcoin Price Outlook – Bitcoin Continues to Hang About Fair Value

Bitcoin Technical Analysis

The Bitcoin market initially dipped just a bit during the trading session on Wednesday but has turned around to show signs of life. All things being equal, this is a market that is just simply killing time, trying to figure out what to do next. This does make a certain amount of sense if you think about the fact that the market is all over the place with risk appetite. And with that, risk appetite, of course, is very wishy-washy at the moment due to the trade tariffs, the war, the geopolitical noise, and everything else going on around the world.

With that being said, it’s not a huge surprise that Bitcoin would struggle. It’s also worth noting that Bitcoin is sitting just below the 200 day EMA as well as the 50 day EMA. Furthermore, we are in the middle of a consolidation range, with the $90,000 level above being a significant resistance barrier, and the $75,000 level underneath being a massive support level.

Ultimately, this is a market that I think will continue to be very noisy. And we are, if this particular range holds, we are definitely near the fair value level, essentially in the middle of it. I have been buying the dip for a while in Bitcoin, just building up a position, but really, I don’t think Bitcoin goes anywhere until we get a resolution to the trade war situation and markets feel better about the global economy.

I think we’re just stuck in this range, and it could be very much like last year, when we went sideways for about six months. I’m starting to run out of faith for momentum, but that doesn’t necessarily mean that the market is going to be negative. I just think it’s got a lot to think about and it is, of course, digesting a lot of gains over the last couple of years while we wait for more risk appetite to return to financial markets on the whole.

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