Bitcoin Price Key Highlights
- Bitcoin price recently broke below a short-term ascending trend line, indicating that a selloff is underway.
- Price popped up from the $14,000 support zone to make a retest of the broken trend line support.
- Applying the Fib tool on the breakout move shows the nearby resistance levels on this pullback.
Bitcoin price broke below a rising trend line to signal a reversal, which might gain traction after this pullback is completed.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA, though, so the path of least resistance might still be to the upside. The 200 SMA could hold as dynamic resistance since it lines up with the 38.2% Fib retracement level around $15,000 while the 38.2% Fib lines up with the 100 SMA at $16,000.
Stochastic is on the move up to indicate the presence of bullish momentum but the oscillator is already in the overbought zone to reflect rally exhaustion. RSI has plenty of room to climb before reaching overbought levels, so bulls could keep the correction going for a bit longer.
Market Factors
Bitcoin volumes have taken a significant hit last week on increased regulation in South Korea and appetite for altcoins, as well as equities. Traders continue to liquidate some of their holdings as bitcoin price appears unable to regain ground enough to attempt creating new highs.
Meanwhile, the dollar has drawn some support from stronger expectations of Fed tightening owing to the tax reform package. Data has been mixed, with the NFP falling short and consumer credit signaling a pickup in spending.
US CPI and retail sales figures are due later in the week, and the attention could be fixed on inflation data. After all, several policymakers spoke of weaker price pressures that might weigh on rate hikes this year, so confirmation from CPI data could be crucial.
As it turned out, several bitcoin ETF proposals have been withdrawn recently due to concerns about SEC regulation, undermining confidence in the cryptocurrecy.
