Bitcoin (BTC/USD) Price Technical Analysis for Dec 14, 2017

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Bitcoin is edging lower after bouncing off its ascending channel resistance and is now making its way towards the mid-channel area of interest. Price is also testing support at the 100 SMA dynamic inflection point.

This short-term moving average is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to continue than to reverse. Price could still find support at the $15,500 level near the channel bottom or the 200 SMA dynamic inflection point.

Stochastic is pointing down to signal that selling pressure is present, but RSI is already starting to turn back up to indicate that buyers are taking control of price action.

The dollar is actually weaker across the board following the FOMC announcement, even as the central bank hiked rates by 0.25% as expected. Fed head Yellen took the presser as another opportunity to emphasize her more cautious view on inflation, citing that it could stay below target for much longer.

US retail sales data is due today and the core figure could post a decent 0.6% increase. Stronger than expected data could keep tightening expectations in play, which could prop the dollar higher. Weak figures, on the other hand, could cast doubts on rate hikes for next year, especially with a new Fed head coming in.

Still, the US currency could draw support from tax reform progress in the days ahead. Republicans have agreed on a final version of the bill and the final vote is scheduled for next week. If this gets approved and enacted soon, US markets could tick higher and regain investor interest.

Bitcoin remains strongly supported by the launch of CBOE futures, though, as this has led to stronger activity at higher volumes. CME and Nasdaq will be launching their own futures soon and could draw more investor interest.

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