Bitcoin (BTC/USD) Price Technical Analysis for April 3, 2017

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Bitcoin is gaining more bullish momentum after breaking above the descending channel resistance and bullish flag. Price has also broken past a double bottom neckline, adding confirmation that further gains are in the cards.

However, the 100 SMA is still below the longer-term 200 SMA on the 4-hour chart so the path of least resistance is to the downside. Bitcoin could still test the next dynamic inflection point at the 200 SMA near $1140 and this might force price to turn back down. On the other hand, a move past this area could signal that buyers are very much in control.

Stochastic is pointing up to show that there’s enough bullish pressure left for a climb to the next area of interest. RSI also seems to be crawling higher but is already inching close to the overbought zone to signal that buyer are getting exhausted. If sellers regain control, bitcoin could fall back to the lows around $900 or at least until the nearby area of interest at $1000.

News reports are revealing that bitcoin experts have reached a grand consensus on the scalability issue over the weekend, as several exchanges have previously signaled that they won’t be supporting Bitcoin Unlimited. This is a new version of the software that risks rendering old bitcoin invalid, much to the concern of investors.

Confidence in the cryptocurrency appears to have been revived by this news as it could leave bitcoin as stable as before. Developers have agreed to merge within two weeks a maxblocksize increase to 4MB which will then further increase by 25% yearly until 32MB. This will also feature modified SegWit to remove the fee discount for signature data.

“After two years of lengthy debate where all minute details have been discussed at great length, we believe that a slightly more than two months lead time is more than sufficient for the network nodes to upgrade.

This announcement is expected to reach all cryptomedia as well as mainstream media. It is doubtful anyone sufficiently involved in this space would not be aware of this historic event. In any case, once a significant portion of nodes upgrade, node operators automatically receive a warning. There is no reasonable argument to provide any further time for this historical moment with freedom day the chosen date,” the statement indicated.

In other bullish bitcoin updates, Japan is set to implement a new law that officially recognizes bitcoin as currency. This means that exchanges will be under regulatory scrutiny and will be required to comply with anti-money laundering (AML) and Know Your Customer (KYC) requirements.

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