Bitcoin Price Key Highlights
- Bitcoin price staged a remarkably strong rally yesterday after a brief pullback to an area of interest highlighted in the previous article.
- Price is just a few points away from the yearly highs around $780, at which profit-taking could take place.
- Technical indicators are showing that the rally could carry on.
Bitcoin price is setting its sights on the yearly highs at $780 as bulls continue to gain traction.
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 gap between the moving averages narrowed a bit when it seemed as though a downward crossover was about to take place. However, it looks like the MAs avoided this scenario and could continue to indicate the presence of bullish momentum.
Stochastic is also turning higher before even reaching the oversold area, also indicating that buyers are eager to get back in the game. RSI is also moving up so bitcoin price could follow suit all the way up to the $780 highs. Stronger bullish pressure could trigger a break past that level but there’s a huge chance that traders could book profits off those levels.
Market Events
Economic data from the US was all weaker than expected recently, and this may have been one of the factors weighing on the US currency against bitcoin price. PPI and industrial production fell short of expectations, hinting at a bit of a slowdown. US CPI and a speech by Fed Chairperson Yellen are lined up today and downbeat outcomes could continue to push the dollar lower.
But, as in the previous rallies, the surge in bitcoin price was seen to be spurred by the influx of funds from Chinese investors as the government took fresh efforts to devalue the yuan. This week, monetary authorities set the trading range of the local currency lower, leading traders from the mainland to pursue higher returns elsewhere and hedge their yuan holdings.
Aside from that, rumors of a large BTC trade at an exchange also led to renewed buying interest in the cryptocurrency.
Charts from SimpleFX