Bitcoin Price Technical Analysis for 02/20/2017 – Waiting for More Bulls

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Bitcoin Price Key Highlights

  • Bitcoin price recently broke past the resistance at $1000, signaling that it’s ready to resume its climb.
  • Price is pulling back to this area of interest, at which plenty of buy orders might be located.
  • Technical indicators are also signaling that more gains are in the cards.

Bitcoin price seems to be regaining its ground as it traded back above $1000 and is gearing up for a pullback from its climb.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In addition, bitcoin price is nearing the 100 SMA, which might already hold as dynamic support keep losses in check. A larger correction could last until the 200 SMA dynamic inflection point, which is closer to the area of interest at $1000.

Stochastic is still on the move down, which means that selling pressure is still in play. RSI is also heading south so bitcoin price might follow suit. In that case, a larger pullback could be in the cards but a sharper selloff is possible, too. If that happens, bitcoin could head back to the support around $900-920.

However, the oscillators are also nearing the oversold area, which means that buyers could get back in the game pretty soon. A rising trend line can also be drawn to connect the lows since February 10, adding another layer of support around the $1000 area so it’s likely that plenty of buy orders are waiting at that level.

Market Events

U.S. markets are closed for the holiday today so liquidity could be low, which also opens up the possibility of volatile action in case there are any catalysts that spur a big move. For one, headlines that sound bullish for the U.S. economy, such as Trump’s tax reform plan could put downward pressure on BTCUSD.

On the other hand, subdued reports on regulatory action in China among bitcoin firms is restoring a bit of calm in the markets, encouraging investors to put funds back in the cryptocurrency once more. To top it off, unease about Italy’s political landscape and Greece’s debt troubles could also drive up demand for alternative assets especially if traders expect another round of capital controls in those nations.

Charts from SimpleFX

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.



1 Bitcoins

Bitcoin News and Search

1 News - 247 News - 247 Bitcoin - 1 Search

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