Bitcoin (BTC/USD) Price Technical Analysis for March 14, 2018

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Bitcoin has previously broken past a long-term descending trend line and has since pulled back for a retest. Applying the Fib extension tool shows the next upside targets.

The 38.2% extension is just past the $10,000 major psychological level then the 50% extension is at the swing high. The 61.8% extension is closer to the $12,000 area of interest then the 76.4% extension is at $12,922.3. The full extension is located at $14,295.

The 100 SMA is safely above the longer-term 200 SMA on the daily time frame to signal that the path of least resistance is to the upside. This means that bullish momentum is still present. Also, the 200 SMA is holding as a dynamic inflection point.

Stochastic starting to make its way out of the oversold region to signal a return in buying pressure. RSI seems to have some room to head south, though, so selling pressure could keep gains in check. A move back below the swing low at $8,500 could mean that the downtrend is gaining traction.

The US dollar is already on weak footing owing to the developments in Washington, but bitcoin is also weighed down by recent headlines on regulation and security glitches. It looks like these opposing factors are keeping price in consolidation at the moment while traders wait for stronger directional clues.

US retail sales data is due next and a downbeat result could dampen rate hike hopes and lead to losses for the US currency across the board. Bitcoin price appears to be tracking stocks and commodities once more, being able to take advantage of risk appetite.

Zooming in to short-term time frames shows a triangle pattern for bitcoin and it might help to wait for an actual breakout before trying to catch the momentum. On the 1-hour time frame, technical indicators appear to favor a potential downside move.

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