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Bitcoin Price Key Highlights
- Bitcoin price has been able to make a correction from its stellar rally over the past week.
- Price pulled back to the $13,000 area then bounced off the support level to signal that it’s ready to resume the climb.
- Bitcoin is now testing the 50% extension level and the next upside targets are marked.
Bitcoin price has completed its correction from the latest rally and is resuming the climb to the swing high.
Technical Indicators Signals
The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This suggests that the rally is more likely to carry on than to reverse. Also, the gap between the moving averages is widening to reflect stronger bullish momentum.
Stochastic is also on the move up to show that buyers are in control of bitcoin price action. RSI has more room to climb, so price could follow suit. However, stochastic is already approaching overbought levels to signal exhaustion among bulls.
Market Factors
The US dollar strengthened on Friday when the non-farm payrolls report printed a higher than expected result. This could up the odds of aggressive tightening in 2018, although the upcoming FOMC decision this week could confirm or negate that.
Updated Fed economic forecasts are due along with this week’s statement, and there will a press conference to follow the announcement. Of course this would be one of Yellen’s last pressers, so traders might be more curious to find out what incoming head Powell thinks.
CBOE has launched its bitcoin futures product but the website has crashed as activity jumped, leading many to worry that systems are overloaded and could hamper trading activity.
“Due to heavy traffic on our website, visitors to http://www.cboe.com may find that it is performing slower than usual and may at times be temporarily unavailable,” the exchange said in a statement. “All trading systems are operating normally.”
Traders are now turning their attention to the launch of CME bitcoin futures next.
