Bitcoin Price Technical Analysis for 03/24/2017 – Bears Waiting at $1050
Bitcoin Price Key Highlights
- Bitcoin price recovered from its slide late in the week as dollar demand dipped on the failure to repeal Obamacare.
- A few more gains could be in the cards for bitcoin price as it makes its way up to the channel resistance near $1050.
- If the top of the channel keeps gains in check, bitcoin could fall back to support or the previous lows at $900.
Bitcoin price is pulling up from its slide but is also approaching the descending channel resistance at $1050.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA on this time frame so the path of least resistance is to the downside. Also, bitcoin price already appears to be finding some resistance at the 100 SMA, which suggests that it could be ready to slide back down to the channel support. Still, a larger pullback faces a couple of roadblocks at the 200 SMA dynamic inflection point and channel resistance.
Stochastic is turning higher to suggest a return in buying pressure. RSI is on its way down but appears to be stalling around the middle, suggesting that range-bound conditions could come into play. Nearby support is located at $950.
Although bitcoin price has more than a few factors dragging it down recently, the dollar’s slide towards the end of the previous week seems to have played a bigger role on BTCUSD movement. After all, Congress initially pushed back a vote on the healthcare bill when they realized they didn’t have enough votes then later on decided to withdraw the proposal.
This signals that the Trump administration could have trouble pushing its agenda to lawmakers, leading investors to speculate that it would take much longer than initially anticipated to see tax reform or financial deregulation to come to fruition. Also, the lack of fiscal stimulus could have repercussions on the central bank’s tightening time line, leading market watchers to price in lower odds of a June hike and set their sights on September instead.
Charts from SimpleFX
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