Bitcoin (BTC/USD) Price Technical Analysis for Dec 13, 2017

Free $100 Forex No-Deposit Bonus

Bitcoin is still trending higher and has just shot up to new record highs again. Price is once again retreating from the climb and could draw support from nearby Fib levels.

Using the retracement tool on the latest swing low and high shows that the 61.8% level is closes to the trend around $14,500. A shallow pullback could draw support from the 38.2% Fib just below $16,000.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the rally is more likely to resume than to reverse. Also, the gap between the moving averages is widening to reflect stronger bullish momentum.

However, stochastic is pointing down and heading south, so bitcoin might follow suit. RSI seems to be moving sideways but is also edging slightly lower, which means that sellers have the upper hand. Buying pressure could return once the oscillators reach oversold levels and turn back up.

The US dollar is drawing support these days due to tax reform progress and the upcoming FOMC decision. A 0.25% hike is widely expected but the updated economic projections of the central bank could set the tone for next year’s tightening expectations and therefore longer-term dollar movement.

As for bitcoin, the cryptocurrency continues to enjoy strong investor interest owing to the launch of CBOE bitcoin futures. Although a glitch led to a temporary outage on overcapacity, the exchange has resumed trading and rakes in higher volumes and increased activity. CME and Nasdaq will be launching their respective bitcoin futures soon and would likely lead to another bump higher in price.

Of course there will always be naysayers calling a top in bitcoin and warning that the bubble is about to burst. Only time will tell, perhaps, but for now the upside momentum looks very strong and would likely stay in play until the end of the year.

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.