Technical

Bitcoin Price Technical Analysis for 05/08/2018 – Where the Bulls Are Waiting

Sarah Jenn | May 8, 2018 | 2:25 am
technical analysis bitcoin
Technical

Bitcoin Price Technical Analysis for 05/08/2018 – Where the Bulls Are Waiting

Sarah Jenn | May 8, 2018 | 2:25 am

Bitcoin Price Key Highlights

  • Bitcoin price bounced off its channel resistance but seems to be encountering support once more.
  • Applying the Fib extension tool until the nearby area of interest shows the next potential upside targets.
  • Technical indicators are signaling that the uptrend could continue but at a weaker pace.

Bitcoin price could resume its uptrend upon testing the nearby support and the Fib extension tool shows how high it can go.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.

However, the gap between the moving averages is narrowing to signal weakening bullish momentum. Bitcoin price is also trading below the 200 SMA dynamic inflection point to show that it might hold as resistance from here. In that case, selling pressure could still pick up and lead to more losses for bitcoin.

If the channel support keeps losses in check, a bounce back up to the swing high around $10,025 or the actual channel resistance could be due. Other inflection points are located at the 38.2% extension or $9,577.8 or the 50% extension near the mid-channel area of interest. The 61.8% extension is at $9,853 and the full extension is past the channel resistance.

Stochastic has been on its way down but is turning back up to suggest a return in bullish momentum. RSI is also moving higher after recently finding itself in the oversold region, reflecting bearish exhaustion.

Market Factors

Profit-taking at the $10,000 barrier has been anticipated but traders appear to have reacted negatively to remarks from Buffet and Gates. Both have expressed bearish views, citing that bitcoin is “rat poison” and is mostly just driven by speculation.

Still, industry developments have been positive lately and regulation has shown more openness to further innovation. The ongoing risk-off flows may also be dampening investor demand, along with the pickup in the dollar, so it will be interesting to see if bulls can charge again at the current area of interest.

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