Bitcoin Price Key Highlights
- Bitcoin price gained further upside traction upon bouncing off the ascending channel support highlighted in earlier articles.
- Price is now making its way towards the top of the channel near the $780 highs or onto the $800 handle.
- Technical indicators are confirming that bulls are still in control of bitcoin action.
Bitcoin price is safely inside its ascending channel on the 4-hour time frame and is making a run for the resistance again.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA still, which means that the path of least resistance is to the upside. The 100 SMA lines up with the channel support at $740, adding to its strength as a floor in case another dip takes place. The gap between the moving averages has been pretty steady so there might not be any downward crossovers anytime soon.
Stochastic is on the move up, also confirming that buyers have enough energy to push for more gains in bitcoin price. Similarly, RSI is heading north so bitcoin could follow suit, although both oscillators are nearing the overbought zones to spur profit-taking.
The next ceiling is located at the $780 area, which lines up with the yearly highs. A break past this level could confirm stronger bullish momentum but there’s another nearby ceiling at the $800 major psychological level, which might be a prime area for profit-taking, particularly ahead of the Thanksgiving holidays.
The Chinese government’s persistent efforts to devalue the yuan have been driving Chinese investors away from local assets and onto alternative investments. Either that or traders are seeking to hedge their yuan-denominated holdings with higher-yielding assets like bitcoin. Further action from Chinese monetary authorities could fuel the ongoing capital flight from China, which has been beneficial for bitcoin.
Volatility is expected to pick up in the coming days as US traders take off for the Thanksgiving long weekend, resulting to thinner liquidity. FOMC minutes and US durable goods orders are up for release today but might not have much of an impact on dollar movement. Still, be mindful of large swings in market sentiment that could force bitcoin price to halt its climb.
Charts from SimpleFX