Bitcoin Price Key Highlights
- Bitcoin price has set yet another record high by surging past the $2500 handle on industry developments.
- BTCUSD broke past a short-term ascending channel formation, indicating that a steeper climb is underway.
- Technical indicators are giving mixed signals on the 15-minute chart so there’s still a chance for a pullback.
Bitcoin price blew past the $2500 barrier and the ascending channel resistance, indicating that bulls are eager to push for more gains.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is still to the upside. The 100 SMA is slightly below the channel support, adding to its strength as a floor in the event of a sudden drop. The gap between the moving averages is widening to reflect stronger bullish momentum that might be enough to take bitcoin price up to $3000 soon.
However, stochastic is already indicating overbought conditions and looks ready to head lower so bitcoin price might follow suit. RSI is also dipping in the overbought territory to signal weakening buying momentum. Once both oscillators turn lower, a correction could happen, with a shallow one finding support at the broken channel resistance and area of interest at $2500. A larger pullback could hit a floor at $2400.
Over the weekend, bitcoin startups and miners reportedly an agreement for the scaling issue and the document was just recently published. The group mentioned that 83% of miners support this proposal so it might be enough to put “hard fork” concerns to bed.
This, on top of the rising demand for safe-haven assets owing to geopolitical risks and terror threats, has kept bitcoin price strongly supported in the past few days and could keep fueling the rallies from here on. To top it off, weaker demand for the dollar after the FOMC minutes indicated low conviction for future rate hikes has also led to an extra boost for BTCUSD.
With that, bitcoin price might be on track towards testing the $3000 psychological barrier from here before any profit-taking scenarios have a material impact on the rallies. News that Moody’s downgraded China’s outlook has also led to an influx of funds to bitcoin as well.