Bitcoin Price Technical Analysis for 01/05/2017 – More Bullish Momentum Past $1200?
Bitcoin Price Key Highlights
- Bitcoin price followed through with its long-term bullish candlestick continuation pattern.
- Price has already taken out the record highs around $1200 at the very start of this year, hinting that further gains are in the cards.
- Bitcoin seems to be setting its sights on the $1300 major psychological level next as the bullish momentum seems unstoppable for now.
Bitcoin price is starting to establish new record highs, indicating a strong start for 2017 on increased investor interest.
Technical Indicators Signals
The 100 SMA remains above the longer-term 200 SMA on the weekly time frame of bitcoin price, still showing that the path of least resistance is to the upside. The gap between the moving averages seems to be widening now after a brief close encounter.
Stochastic has been indicating overbought conditions for quite some time but has shown no signs of crossing down just yet, which means that there’s still a considerable amount of buying pressure left. RSI is still heading up so bitcoin price could follow suit and make its way to the next resistance levels.
This strong bullish momentum could be enough to convince more investors to hop in the bandwagon, although many are also hopeful that a quick pullback would allow them to get in at a better price. Potential retracement areas can be seen on short-term time frames, with the $1100-1200 former resistance area likely to hold as an area of interest.
Apart from the increased volumes that bitcoin price has taken advantage of in the past few days, the cryptocurrency also got a boost against the US dollar when the FOMC minutes revealed that not all policymakers were feeling very hawkish. In fact, the transcript of their meeting indicated a split among members, with some favoring a more gradual tightening approach to give room for Trump’s fiscal policy changes.
This was enough to cast doubt on the Fed’s projection of three interest rate hikes this year, causing the dollar to retreat across the board. Global investors, particularly in China, remain on the hunt for higher returns provided by assets like bitcoin while market risks remain.
Charts from SimpleFX
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