Bitcoin Price Technical Analysis for 04/06/2017 – Next Target at $1225?
Bitcoin Price Key Highlights
- Bitcoin price is still on a climb and is now moving closer to the next major resistance around $1225.
- If the range resistance holds and traders book profits at this area, another drop to support at $900 could be seen.
- Technical indicators are giving mixed signals at the moment.
Bitcoin price is moving close to the top of its range and could be due for a bounce if bulls book profits.
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, the 100 SMA recently held as near-term support while the 200 SMA is close to the bottom of the range, adding to its strength as a floor in the event of a drop. The gap between the moving averages is getting wider to indicate stronger buying pressure.
However, stochastic is already indicating overbought conditions and could be due to turn lower, which could draw more sellers to the game. RSI is on the move up so there’s some bullish momentum left to take bitcoin price up to the range resistance.
Dollar demand dipped again in recent trading sessions as the FOMC minutes and House Speaker Paul Ryan confirmed that it may take longer for tax reform to take effect. The minutes of the Fed meeting also contained some concerns about the high levels of stocks and hinted that policymakers could pursue balance sheet adjustments soon.
Meanwhile, bitcoin price continues to advance on easing concerns surrounding the network hard fork. Investors appear to be reestablishing their bullish positions as they gain more confidence that incompatibilities may be avoided, especially once the plan to merge existing versions of the software materializes on July 4.
So far, there have been no additional reports on increased regulation or headwinds to the industry so no news is good news for the cryptocurrency these days.
Charts from SimpleFX
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