After having moved downwards for quite some time, Bitcoin has started showing bullish signs and is moving upwards. The price has been breaching resistance and from what it seems is only trending upwards.
According to the specialised indicators like Simple Moving Averages, 100 SMA is way below 200 SMA which suggests a selloff. There have been signs of higher highs and higher lows. The recent price activity also suggests there might as well be a breakout owing to the continued increase in the rising wedge arrangement.
The Relative Strength Index also seems to be heading north and is expected to descend after it makes it to the peak, i.e., the overbought conditions. Stochastic is already very close to the aforementioned conditions and might stop showing any further bullish signs.
The 38.2% fibonacci resonates with the stochastic and might plunge Bitcoin downwards. However, if there’s a larger correction, the price might move way up to the 61.8% fibonacci at $8400 and signal bullish bias. The application of fibonacci retracement tool on the latest trends shows 50% level matches the broken triangle support. This is also in harmony with the 100 SMA dynamic inflection point.
Market conditions in the US, as well as the incidences of stricter rules and regulations around the world, have made the ‘bitcoin price activity’ more controlled than usual. Nevertheless, bitcoin is sustaining a positive start this quarter. For most investors, this uptrend could be a relief from the previous declines.
The upward movement happens to materialise amidst a handful of significant events like the FOMC meeting and the NFP discharge. The latter is expected to give the US dollar a significant impetus. Analysts also feel that the hawkish expectations from the Fed predisposition could end up being advantageous for the Bitcoin investors against the dollar soaring high.