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Bitcoin Price Key Highlights
- Bitcoin price bounced off the area of interest around $4000 and could be ready to break past its record highs.
- An ascending channel is forming on the pair’s 1-hour time frame and price could aim for the resistance at $4500.
- Technical indicators, however, are showing mixed signals with oscillators hinting at uptrend exhaustion.
Bitcoin price continues to be propped up by strong bullish pressure, possibly setting its sights on new highs.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In addition, the 100 SMA recently held as strong dynamic support and is close to the ascending channel bottom.
Stochastic is turning lower to signal a return in bearish pressure, though, possibly triggering another test of support around $4100. A break below the channel bottom could bring bitcoin price to the 200 SMA dynamic inflection point at $3800 next. RSI is also turning lower to indicate a pickup in selling pressure.
Market Factors
Although bitcoin price was weighed down by some profit-taking on the return in risk appetite recently, dollar weakness came back into play and boosted BTCUSD. The FOMC minutes are being blamed as the main catalyst for the drop since policymakers refrained from setting a date on the balance sheet runoff. A number of officials also reiterated concerns about inflation and how it might be prudent to wait for more data.
Apart from that, the political fallout in Washington after Trump fumbled to respond to the Charlottesville events is also dampening expectations of fiscal reform. Members of his business committee formed to advise him on policy and strategy have quit while there have been talks of top administration officials also looking to resign.
Bitcoin, on the other hand, remains resilient throughout these uncertainties. After all, the cryptocurrency has managed to survive the hard fork without much complications but with the capacity to handle more transactions than usual.
