Bitcoin (BTC/USD) Price Technical Analysis for August 23, 2018

Free $100 Forex No-Deposit Bonus

Bitcoin is back to the area of interest visible on the 1-hour time frame and is still deciding whether to make a bounce or a break. If support holds, bitcoin could aim for the Fibonacci extension levels next.

In particular, the 38.2% extension is near the mid-channel area of interest around $6,700 then the 61.8% extension is closer to the top of the channel at $6,915. Stronger bullish pressure could take bitcoin past the channel top and onto the 78.6% extension at $7,100 then the full extension around $7,315.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, there’s still a strong chance for the uptrend to resume from here, but the gap between the moving averages has narrowed. This signals that a bearish crossover might be in the works, possibly leading to another wave lower.

RSI is making its way out of the oversold region, though, suggesting that buyers are trying to regain control while sellers take a break. Stochastic is already on the move up so bitcoin could follow suit while bullish momentum returns. A break below the swing low around $6,270, on the other hand, could mean a reversal from the climb.

Bitcoin staged a strong rally in anticipation of the SEC decision on a number of bitcoin ETF applications this week but soon gave up ground when the regulator rejected these proposals. This may be a setback in terms of getting the thumbs-up from regulators in terms of crypto-based securities, but traders could still be hopeful that the next set of applications could see better results.

Recall that the SEC shelved its decision for a number of applications to the end of September to give more time for a comment period. Approval could revive strong gains for bitcoin, possibly spurring the much-anticipated rebound towards the end of the year. Rejection, on the other hand, could mean more losses.

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.