Bitcoin Price Technical Analysis for 09/02/2016 – Pullback or Continuation?

Bitcoin Price Key Highlights

  • Bitcoin price made a quick downside break of a short-term range, indicating that further losses are likely.
  • This breakdown was brought forth by dollar strength as risk aversion returned to the financial markets yesterday.
  • Price is now consolidating as traders wait for additional clues.

Bitcoin price showed bearish momentum but sellers might need to make a correction before taking it lower. Technical indicators are giving mixed signals for now.

Technical Indicators Signals

Using the Fib tool on the latest breakout move shows that the 38.2% correction level lines up with a broken short-term support around $373. the 61.8% Fib is close to the 200 SMA, which typically acts as a dynamic resistance level.

However, the 100 SMA is still above the 200 SMA so the path of least resistance might be to the upside and bitcoin price could go for another round of gains. A downward crossover appears to be brewing before more sellers could join the fold.

Stochastic is on the move up so bitcoin price might follow suit. RSI is making its way out of the oversold region, also indicating that buyers could gain traction and push bitcoin price further north to the 100 SMA resistance around $380.

Read more ... source: TheBitcoinNews

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