Bitcoin (BTC/USD) Price Technical Analysis for March 29, 2017

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Bulls are pushing harder, allowing BTCUSD to break past the longer-term channel resistance and keep moving inside its short-term bullish channel. Price bounced off the resistance around $1070 and is now testing support, which lines up with the broken falling channel resistance.

If this keeps losses in check, bitcoin could make its way back up to the top of the ascending channel and beyond. However, the 100 SMA is below the longer-term 200 SMA on this time frame so the path of least resistance is still to the downside. In that case, there’s still some chance that BTCUSD could fall back inside the falling channel and resume is selloff.

It’s worth noting, though, that the gap between the moving averages is narrowing to show weakening bearish pressure. If this continues to an upward crossover, bulls could get back in the game and sustain the reversal from the downtrend. Also, stochastic is dipping in the oversold region to show exhaustion among sellers. Once the oscillator pulls higher, bullish pressure could return.

RSI is on the move down to show that bears are in control of BTCUSD movement for the time being. However, once this also reaches the oversold region and turns higher, buyers could get back in the game and give the uptrend more traction.

Bitcoin is currently under some downside pressure as the SEC denied the application of another bitcoin ETF. This follows their previous decision on the COIN ETF, citing that the largely unregulated nature of the cryptocurrency in other markets opens it up for a large incidence of fraud and manipulation. This does not bode well for the next bitcoin ETF application lined up from Grayscale Partners.

In contrast, the US dollar is gaining some support from upbeat economic data once more. The CB consumer confidence index skyrocketed to its highest level since December 2000, signaling strong financial confidence supporting an increase in spending later on. This could continue to keep US growth prospects strong, which supports the likelihood of more Fed rate hikes.

Investors’ attention could turn to the Brexit events for today, though, as UK Prime Minister May already reportedly signed the document to be delivered to the EU to officially invoke Article 50. Traders are on the lookout for any signs of uncertainty or hostility that could influence negotiations in the next few months, which would probably lead to a pickup in risk aversion and BTCUSD price. UK lawmakers will convene and EU head Donald Tusk has a press conference scheduled.

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