Bitcoin Q3 Technical Analysis
The Bitcoin market has been sideways for the better part of two months during Q2. And as we go into Q3, it looks like we are pressuring the same resistance barrier near the $110,000 level. If we can break above there, it opens up the possibility of a move to the $120,000 level given enough time. Short-term pullbacks at this point in time are very likely, but I think the $100,000 level will be pivotal during Q3.
It’s a little bit difficult to easily predict when we go higher, but I think we are definitely knocking on the door as we are starting Q3. Short-term pullbacks give you the opportunity to take advantage of cheap coins as it were. And if we were to break down below the $100,000 level, we could see this market dropping down to the 50-week EMA at the $88,000 level. And I think you would have a lot of people stepping in.
Part of what is going on right now at the moment is that traders are starting to look at the idea of the Federal Reserve cutting rates as perhaps driving down the value of the dollar, perhaps bringing loose money back into the picture, and that helps Bitcoin. I think they’re going to be somewhat disappointed. Yes, I think the Fed cuts, but I think they cut extraordinarily slowly. So, I’m going to say something that a lot of people don’t want to hear.
I suspect Bitcoin goes higher in Q3, but I don’t think it’s a runaway freight trade. We will probably get a quick knee-jerk reaction to the initial cut, but then people typically, once the Federal Reserve starts cutting, start asking questions as to why they might be cutting. This is something that a lot of people don’t really pay attention to, the fact that not all cuts are good. Perhaps they see something we don’t.
