Bitcoin Price Key Highlights
- Bitcoin price continues to tread higher slowly, moving inside an ascending channel pattern visible on its 1-hour chart.
- Price just tested the channel resistance on a new wave higher and might be on its way towards testing support.
- Technical indicators also seem to be warming up to the idea of an uptrend in bitcoin price.
Bitcoin price is still safely inside its ascending channel, with technical indicators confirming that the climb could carry on.
Technical Indicators Signals
The 100 SMA is attempting to cross above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to continue rather than to reverse. In addition, the moving averages are close to the channel support at $850, acting as the last line of defense in the event of a large pullback.
Stochastic is heading south to show that sellers are regaining control of bitcoin price action after the latest rally. RSI is also turning lower so bitcoin might follow suit and head back towards the area of interest near the channel support.
Once the oscillators reach the oversold levels and turn higher, buyers could get back in the game and push bitcoin price back up to the channel resistance at $925-950.
Market Events
The US dollar continues to weaken across the board as traders are anticipating additional uncertainty leading up to President-elect Trump’s inauguration. To top it off, more risks in the global markets stemming from a possible “hard Brexit” as emphasized in UK Prime Minister Theresa May’s speech also encouraged traders to seek returns in cryptocurrencies instead of equities or bonds.
Moving forward, these uncertainties could keep traders bullish on bitcoin, especially since the threat of additional restrictions in China seems to have abated. Authorities are still investigating bitcoin exchanges and clients in the country but have stopped short of implementing a bitcoin ban so far. Any updates on this issue could lead to another round of volatility in bitcoin price.
Charts from SimpleFX
