Bitcoin Price Analysis for 12/30/2016 – Waiting for a Correction?

Avatar newsbtc 3 years ago

Bitcoin Price Key Highlights

  • Bitcoin price seems to be having trouble breaking past the $1000 mark so a pullback might be in order.
  • On the 1-hour time frame, an ascending channel can be seen and a pullback to support at $940 might be in the works.
  • The channel support lines up with a broken resistance area and another dynamic inflection point.

Bitcoin price could make a correction before resuming its climb past the $1000 mark and the short-term time frames illustrate potential pullback areas.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In addition, the 200 SMA coincides with the channel support, adding to its strength as a floor. For now, though, the 100 SMA seems to be holding as dynamic support as well.

RSI is on the move down to indicate that buyers are taking a break and letting sellers take control of price action. Similarly, stochastic is heading south so bitcoin price could follow suit. Buyers might be waiting to hop in at the $940 area but a break below this level could lead to a test of the next floor around $900. A bounce off the area of interest could spur another climb to the $1000 level and beyond.

Market Events

There hasn’t been a lot of goings-on in the financial markets these days and it doesn’t help volatility that most traders are still out enjoying the holidays. Still, it’s worth noting that a bit of risk aversion is present in the markets due to concerns for the incoming year but traders seem to be holding out on taking any large positions at the moment.

Reports that China is making some adjustments in setting its yuan fix could continue to keep the cryptocurrency supported, as investors in the mainland are staying wary of any additional moves to devalue the currency. This would lead them to look for higher returns in alternative assets and find ways to hedge against their yuan-denominated holdings, thereby boosting bitcoin price.

Charts from SimpleFX

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