Analysis Bitcoin

BTC Price Tech Analysis for 12/26/2016 – Bulls in a Mood Above $900

Sarah Jenn | December 26, 2016 | 4:53 am

BTC Price Tech Analysis for 12/26/2016 – Bulls in a Mood Above $900

Sarah Jenn | December 26, 2016 | 4:53 am

Bitcoin Price Key Highlights

  • Bitcoin price carried on with its climb as expected, after breaking past the $800 barrier a few days back.
  • Price topped near $950 before making a pullback on Christmas Day, which then offered bulls a chance to add to their long positions or draw more buyers in.
  • Price could be on its way to breaking past the recent highs from here.

Bitcoin price is bracing itself for a strong finish for the year, as it raked in more gains above $900.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA on the 4-hour time frame of bitcoin, confirming that the path of least resistance is to the upside. In other words, it’s more likely for bitcoin price to keep climbing than reverse the ongoing trend. In fact, the gap between the moving averages is getting wider, which means that bulls are stepping up their game.

Price pulled back to the $900 psychological level, which previously served as near-term resistance then held as support. A few reversal candlesticks formed around that level over the weekend before the crytpocurrency resumed its rally.

Stochastic also made a much-needed dip and is now turning higher once more, confirming that more bulls joined the game. RSI is treading sideways and isn’t providing strong directional clues at the moment.

Market Events

The US dollar seemed unable to keep up its stellar performance in the previous week as concerns about a nuclear arms race with Russia hit the newswires. Traders are also becoming increasingly anxious about the repercussions of Trump’s trade deal negotiations and higher import taxes on businesses and global economic growth.

With that, bitcoin price was able to take advantage of the pickup in uncertainty. Apart from the goings-on in the US, terror attacks in Europe and the Italian banking crisis also dampened investor confidence in equities and fiat currencies. Worsening tensions could draw more traders to alternative investments like bitcoin as economic uncertainties weigh on returns in other markets.

If this carries on for the rest of the year, bitcoin price could be on track towards testing the $1,000 mark or even its record highs near $1,200.

Charts from SimpleFX

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