Bitcoin Price Key Highlights
Bitcoin price has been trending higher, completing a corrective wave recently and reaching one of the Fibonacci extension levels indicated in an earlier article.Price is now testing the ascending channel resistance visible on the 4-hour chart and might be due for a move back towards support again.
Bitcoin price could be in for a quick selloff from here, as risk aversion is spurring demand for the safe-haven dollar, possibly allowing a test of the channel support.
Support at $380?
The 100 SMA is moving above the 200 SMA, indicating that the uptrend might carry on. In addition, the moving averages are right around the bottom of the ascending channel, adding to its potential strength as a support zone.
The $400 level is a good area to book profits for bulls so this might spur a bit of a drop. In addition, stochastic is indicating overbought conditions and is turning lower, suggesting that sellers are about to take control.
RSI is also on its way down, with a slight bearish divergence to boot. Notice how bitcoin price made higher highs from the start of December while the oscillator made lower highs.
The average directional index is treading slightly higher, indicating that trending market conditions are still in play. Since bitcoin price is currently in an uptrend, it’s likely that this could persist.
Commodity prices have been on the decline since the start of this week, weighing on demand for riskier assets such as bitcoin. In turn, this has spurred support for the lower-yielding US dollar, especially since the Fed is on track towards hiking rates later on this month.
Intraday support level – $380
Intraday resistance level – $400
Technical Indicators Settings:
100 SMA and 200 SMAStochastic (8, 3, 3)RSI (14)ADX (14, 14)
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