Bitcoin (BTC/USD) Price Technical Analysis for Aug 25, 2017

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Bitcoin has completed its pullback to the rising trend line support visible on its 4-hour chart and is now testing the swing high. Stronger bullish momentum could spur an upside break to the next potential resistance levels highlighted by the Fibonacci extension tool.

The 100 SMA is safely above the longer-term 200 SMA so the path of least resistance is to the upside. The gap between the moving averages is widening to reflect strengthening bullish momentum. The short-term moving average lines up with the rising trend line support, adding to its strength as a floor in the event of another pullback.

Stochastic is also pointing up to show that buyers are in control but that the rally could slow as overbought conditions are met. RSI has more room to head higher so bitcoin might follow suit.

The next resistance is located at $4659 then at the 76.4% Fib near the $4700 mark. The full extension is at the $5285 level. Once both oscillators hit overbought levels and turn lower, selling pressure could return.

Bitcoin is regaining ground following the activation of SegWit since there have been no major issues so far. Price recently took a dip when rival version bitcoin cash started gaining popularity among miners for generating blocks 1-2 minutes faster than the original one. This revived incompatibility concerns if more exchanges start accepting bitcoin cash, but the upgrade seems to have gone by without a glitch and will allow the network to handle more transactions just the same.

Meanwhile, the dollar is under pressure ahead of Fed Chairperson Janet Yellen’s speech during the Jackson Hole Symposium. Cautious remarks could dampen hopes of a Fed rate hike next month or even in December as policymakers have been warning about weak inflation lately. She is also expected to provide a timeline on the balance sheet runoff, but refraining would also put more weight on the dollar.

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