Bitcoin Price Technical Analysis for 01/10/2018 – Small Reversal Signal


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Bitcoin Price Key Highlights

  • Bitcoin price appears ready for an additional selloff as price has formed a head and shoulders pattern on the 1-hour chart.
  • Price has yet to interrupt below the neckline across the $14,000 major psychological support.
  • The chart pattern is approximately $3,000 tall so the resulting drop might be of the identical height.

Bitcoin price is forming yet another selloff signal on a short-term time-frame, but technical indicators are looking mixed.

Technical Indicators Signals

The 100 SMA continues to be above the longer-term 200 SMA on this time-frame to suggest that the trail of least resistance is to the upside or that the rally could continue. However, the gap between the moving averages has narrowed significantly to point out that a downward crossover and and pickup in bearish momentum is imminent.

A break below the neckline could take bitcoin price right down to the $10,000-11,000 region next while a bounce could result in a move as much as $15,000 then the highs at $17,000.

Stochastic is pulling up from the oversold region to signal a return in buying momentum while RSI also appears to be slowly heading north as well.

Market Factors

Dollar demand has once again ticked higher on record high Treasury yields, in addition to record closes for equity indices. Traders at the moment are looking forward to a positive earnings season scheduled to start out on Friday, and these upbeat expectations are more likely to be sustained as tax reform kicks in.

Meanwhile, bitcoin price continues to reel from the hesitation among ETFs facing SEC regulation. A few funds withdrew their applications, citing pushback from the financial watchdog. Direxion Shares ETF Trust secretary Angela Brickl wrote:

“On a call with the Staff on January 5, 2018, the Staff expressed concerns regarding the liquidity and valuation of the underlying instruments during which the Fund intends to primarily invest and requested that the Trust withdraw the Amendment until such time as these concerns are resolved. In response to the Staff’s request, the Trust respectfully requests withdrawal of the Amendment.”

This cryptocurrency can also be losing ground to its altcoin rivals, in addition to equities which might be performing better.