Bitcoin Price Analysis for 12/28/2016 – Closing in on $1000!

Avatar newsbtc 3 years ago

Bitcoin Price Key Highlights

  • Bitcoin price continued its ascent yesterday, taking out the $950 psychological barrier and setting its sights on $1000 next.
  • A rising trend line can be drawn to connect the recent lows of price action, illustrating potential support levels in the event of a pullback.
  • Profit-taking could ensue at the $1000 level since this represents a major psychological number.

Bitcoin price seems unstoppable in its climb as it is gunning for the $1000 level, which could be a profit-taking point.

Technical Indicators Signals

The 100 SMA is above the 200 SMA on the 1-hour time frame, indicating that the path of least resistance is to the upside. In addition, the 100 SMA is in line with the rising trend line support, adding to its strength as a floor near the $940-950 region. However, the gap between the moving averages seems to be narrowing so bullish momentum could weaken.

Stochastic has been lingering in the overbought region for quite some time but has shown no signs of turning lower just yet, which suggests that bulls are still putting up a fight. This might leave them with enough energy for a test of the $1000 level before long positions are closed or sellers scalp for a potential bounce off the resistance.

RSI is also nearing the overbought zone but has room to climb so bitcoin price could follow suit. Taking out the $1000 level could open the path for a test of the $1200 area.

Market Events

Economic data from the US was stronger than expected yesterday but these did little to boost the US currency against bitcoin price. This suggests that other factors are acting as stronger driving forces for the cryptocurrency, and an analysis of other financial assets such as commodities and stocks indicates that risk aversion might still be present.

While investors seem to be shrugging off recent jitters from terror attacks and the Italian banking crisis, traders still seem to be hedging against their US positions with bitcoin in the event that Trump’s administration does more harm than good. With that, bitcoin price could continue to rake in gains for as long as this sentiment persists but watch out for strong resistance at $1000.

Charts from SimpleFX

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