Bitcoin Price Technical Analysis for 03/05/2018 – Bulls Leading the Charge

Bitcoin Price Key Highlights

  • Bitcoin price is edging higher steadily inside an ascending channel formation.
  • Price just bounced off support and is halfway through the channel, setting its sights on the resistance close to $12,000.
  • Technical indicators are signaling potential profit-taking soon.

Bitcoin price is trending higher inside an ascending channel on the 1-hour time frame and may have enough momentum to climb to the top.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA to show that the path of least resistance is to the upside. In other words, the uptrend is more likely to continue than to reverse. Also, the 100 SMA lines up with the channel support to add to its strength as a floor.

However, stochastic is already indicating overbought conditions and turning lower could draw sellers back in. RSI has a bit more room to climb so bitcoin price could still head north to the top of the channel before bearish pressure returns.

A break below the channel support around $11,200, however, could indicate that a reversal or downtrend is underway.

Market Factors

Bitcoin price seems to be taking advantage of risk-off flows once more as trade war fears are gripping financial markets. Trump has announced his plans to impose higher tariffs on steel and aluminum imports in order to protect US producers, but this could wind up hurting commodity demand elsewhere.

Apart from that, its trade partners could retaliate and refuse to ship goods to the US, which would also be negative for its own economy. Stocks and commodities have tanked since the announcement, but bitcoin price has managed to retain its lead.

US reports could take center stage this week and impact BTCUSD price action as the February NFP is due on Friday. Bitcoin is a bit shaky on reports of increased SEC oversight, but market watchers appear confident that the regulator will not hamper developments in the cryptocurrency industry.

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FOMO Moments

Another week begins in crypto land and the Asian markets are bubbling away nicely. Most altcoins are in the green, albeit marginally, although Bitcoin hasn’t really moved over the past 24 hours and is still floating around $11,500. Total market capacity has reached a weekly high this morning of $465 billion and one altcoin is leading the pack once again. Ripple’s XRP is showing the greatest gains during the Asian trading session.

Coinmarketcap reports that Ripple is trading 10% higher on the day. Since its almighty spike at the beginning of the year XRP has been largely trending downwards and has gone back below a dollar several times, the lowest point being $0.60 on February 6. Today it is back over a dollar again trading up from $0.90 where it has been for the last couple of days. Despite a growing number of new partnerships Ripple’s cryptocurrency has failed to gain momentum.

This morning’s price spike has been caused by the acceptance of a number of banks in the region and new trials for fund transfers. South Korea’s Woori Bank is currently testing the Ripple network for overseas transactions and the Japanese Bank Consortium is also using the company’s RippleNet to speed up transfers and eventually do away with the archaic Swift system. A bit of hype from a few crypto executives including the Coinbase President and Ripple CEO appearing on CNBC’s ‘Fast Money’ show on Tuesday with a possible announcement has also renewed interest.

XRP is a favourite among Asian traders; the lion’s share is traded in South Korea on two main exchanges there, Bithumb and Upbit in KRW. Binance and Bittrex also account for over 20% of the global trade in XRP. Ripple has been solidly planted at third place in the charts with a market cap of just under $40 billion. Around $838 million has been traded in the past 24 hours making XRP the morning’s leading altcoin.

Other altcoins enjoying solid gains in Asia this morning include Stellar Lumens, Monero and Zcash.

More on Ripple can be found here:

FOMO Moments is a section that takes a daily look at the top 25 altcoins during the Asian trading session and analyses the best performing one, looking for trends and fundamentals.