Bitcoin Price Technical Analysis for 07/14/2016 – New Uptrend Forming?

Bitcoin Price Key Highlights

  • Bitcoin price underwent additional volatility and sold off yesterday but it appears to be testing another support area.
  • Price is forming an ascending channel pattern on its 1-hour time frame and might be due for a bounce towards the resistance.
  • Technical indicators are also suggesting that buyers could regain control.

Bitcoin price could be due for a bounce off this support zone and technical indicators appear to be in agreement.

Technical Indicators Signals

The 100 SMA is crossing above the longer-term 200 SMA to confirm that the uptrend could carry on. In addition, the moving averages line up with the channel support, adding to its strength as a floor. If a bounce takes place, bitcoin price could head up to the top of the channel around $680.

Stochastic is nearing the oversold zone to show that sellers are getting exhausted and that buyers might take over. The oscillator has yet to turn higher to show a return in bullish pressure.

However, if sellers refuse to let up, a break below the channel support could ensue and push bitcoin price on a prolonged drop, possibly until the area of interest at $640 then onto the major psychological support at $600.

Bitcoin<p><a href=Read more ... source: TheBitcoinNews