Bitcoin Price Technical Analysis for 02/24/2017 – Aiming for $1200!

Bitcoin Price Key Highlights

• Bitcoin price is setting its sights higher once more as confidence was restored in the markets.
• Price is still moving inside a long-term ascending channel formation visible on the 4-hour time frame.
• Price has breached the mid-channel area of interest and is setting its sights on the resistance at $1200.

Bitcoin price has gained bullish momentum once more, allowing it to aim higher and break past the February highs.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA on the 4-hour chart so the path of least resistance is to the upside. However, it’s worth noting that the gap between the moving averages is narrowing so a downward crossover could be possible. If that materializes, sellers could get back in the game and push for a correction from the climb.

Also, stochastic is indicating overbought conditions, which means that buyers may be running out of steam soon. RSI is also in the overbought region as well, hinting that a selloff might be in the cards once both oscillators turn back down. Still, the moving averages could hold as near-term support since these are close to the ascending channel support at $1100, adding to its strength as a floor.

Market Events

Dollar demand is fading once more to the benefit of BTCUSD as traders are starting to lose excitement about the Trump administration’s aggressive plans in terms of tax reform, financial deregulation, and infrastructure spending. In Treasury Secretary Mnuchin’s speech, he downplayed campaign promises on 4% growth and explained that fiscal policy changes could take a year or two to kick in when it comes to boosting economic performance.

In China, the lack of headlines on the government’s crackdown on bitcoin exchanges is allowing investors to put their money back in the cryptocurrency. It seems as though authorities are not looking to implement stricter regulations or impose penalties on bitcoin clients, but there’s still a slight chance that any major announcement could wipe out recent bitcoin price gains again as it did so in the first couple of months this year.

Charts from SimpleFX

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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