Bitcoin Price Key Highlights
- Bitcoin price continues to move higher recently, trading inside an ascending channel on its 1-hour chart.
- Price just bounced off the resistance and could be due for a test of support.
- Technical indicators are giving mixed signals as to whether the uptrend is likely to carry on or not.
Bitcoin price is keeping up its uptrend and might be due for a bounce off support at $1200.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. This means that the climb is more likely to carry on than to reverse. The gap between the moving averages is maintained so there might not be any new downward crossovers to draw more sellers in. Also, the 100 SMA dynamic support lines up with the bottom of the channel, adding to its strength as a floor in the event of a pullback.
Stochastic is heading south so bitcoin price could follow suit. RSI is also moving down to indicate that sellers are in control of price action. In that case a downside break of support could be possible and bitcoin price could head to the 200 SMA dynamic support next.
However, once both oscillators hit the oversold areas, buyers could return and push price back up to the channel resistance at $1250.
Geopolitical risks continue to dominate the headlines, keeping financial traders on edge. This is positive for bitcoin price, which usually benefits from a pick up in risk aversion that impacts other financial markets.
Things could get particularly interesting leading up to the Holy Week market holidays and long weekend as thinner liquidity could mean more sensitivity to headlines, allowing small positions to lead huge moves in bitcoin price action. There are still a few US reports up for release in the next few days, although demand for the Greenback appears to have faded with weaker expectations of tax reform and rate hikes owing to latest updates.
Charts from SimpleFX
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