Bitcoin (BTC/USD) Price Technical Analysis for Nov 27, 2017

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Bitcoin has been on a tear over the Thanksgiving holidays, surging to new all-time highs at the start of this week as well. However, the rallies might be overdone and traders might be looking to book profits soon.

Stochastic has been indicating overbought conditions for quite some time, which means that buyers are feeling exhausted. If sellers take over, bitcoin could pull back to the nearby Fib levels or the ascending trend line connecting the lows since mid-November.

The 61.8% Fib is closest to the trend line at $8600 and might be the line in the sand for an uptrend correction. This is also near the 100 SMA dynamic support, which 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.

If any of the Fib levels are able to keep losses in check, bitcoin could climb back to the swing high near $9600 or higher. Analysts predict that bitcoin is on track towards testing $10,000 before the end of the year.

An influx in retail accounts and activity is being touted as the reason for the latest rally. Coinbase reportedly added 100,000 accounts from Wednesday to Friday last week, and investors are rushing to reopen their long positions early this week for fear of missing out on the rally.

Apart from that, anticipation for CME bitcoin futures is also propping the cryptocurrency higher. Many expect the launch to take place this year, although delays due to regulation are still possible. Even so, if this product is eventually launched, bitcoin is poised to enjoy stronger volumes and likely more price gains in the coming months.

Besides, the dollar is on weak footing owing to a less upbeat view on inflation shared by Fed Chairperson Yellen and FOMC members. The slow progress in tax reform so far is also keeping the US currency on shaky ground.

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