Bitcoin (BTC/USD) Price Technical Analysis for May 10, 2018

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Bitcoin is finding support at the ascending channel bottom on the 4-hour time frame, so the uptrend could resume from here. The Fibonacci extension tool shows the next potential resistance zones.

Price is already closing on the 38.2% extension at $9429 then to 50% extension is near the $9600 major psychological mark. The 61.8% extension is near the mid-channel area of interest at $9712 and the 76.4% extension is at the swing high or $9914. The full extension is above the channel resistance and the $10,000 major psychological level.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This suggests that the uptrend is more likely to continue than to reverse. The 100 SMA appears to have held as dynamic support as well, and the widening gap between the moving averages reflects strengthening bullish momentum.

RSI is pulling up from overbought levels to reflect a return in buying pressure. A bit of bullish divergence can also be noted as the oscillator made lower lows while price had higher lows.

Stochastic is also moving north so bitcoin could follow suit. However, this oscillator is nearing overbought levels to reflect weakening bullish pressure.

Bitcoin was weighed down by profit-taking at the $10,000 barrier and by negative remarks from Warren Buffet. Then again, industry developments have been mostly positive so bulls continue to defend the $9,000 area of interest.

It has been reported that ICE is planning on launching a bitcoin exchange, which would offer swap contracts to its clients. This could bring a larger influx of institutional funds, which would mean stronger liquidity and more trading activity. Furthermore, this could later on be expanded to other altcoins.

For now, though, bitcoin demand seems to be weighed down by risk-off flows on geopolitical tensions. Trump announced that the US would pull out of the Iran deal, so it’s understandable that investors are being cautious at the moment.

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