Bitcoin (BTC/USD) Price Technical Analysis for April 3, 2018

Free $100 Forex No-Deposit Bonus

Bitcoin price has been closing higher so far this week as it approaches a correction area visible on the 4-hour time frame. Note that price is still trading inside a descending channel pattern and has just broken past the mid-channel area of interest.

Price could now test the 38.2% correction level at $7450 and keeping gains in check could push it back down to the swing low at $6450 or to the channel support closer to $6000. The 50% level is closer to the channel resistance at $7750 and a former support zone, which might now hold as a ceiling. The 61.8% Fib is in line with the $8000 handle and the 100 SMA dynamic inflection point.

Speaking of moving averages, the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that the downtrend is more likely to continue than to reverse. Still, a break past the Fibs and top of the channel could pave the way for a test of the 200 SMA dynamic resistance next.

Stochastic is on the move up but is already dipping into overbought territory. This suggests that bulls are already exhausted and could let sellers take over, particularly when the oscillator starts heading back down.

Bitcoin is doing well so far this month as a pickup in cryptocurrency volumes in exchanges like Bitfinex and Binance restored investors’ confidence that activity could be sustained even with the ban in cryptocurrency ads on Google and Twitter.

Apart from that, traders might be dumping their dollar holdings on renewed fears of a trade war between China and the US as the former already released a list of US imports to be subject to higher tariffs. The US government will release their own list of Chinese products to impose higher duties on this week, which suggests that tensions could still worsen.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.