Bitcoin Price Technical Analysis for 10/17/2016 – Breakout Brewing?

Blockchain Media Group

Bitcoin Price Key Highlights

  • Bitcoin price is still stuck in consolidation, moving between resistance at $646 and support around $637.
  • Price just came off a test of resistance and could have its sights set back on support.
  • A pickup in volatility could lead to a break in either direction, setting the tone for longer-term price action.

Bitcoin price continues to consolidate in a tight range as traders wait for stronger market catalysts to set direction.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA on this time frame so the path of least resistance could be to the upside. However, the moving averages simply appear to be oscillating so further consolidation is possible. Right now, the moving averages are also holding as dynamic support levels, which might be enough to keep near-term losses in check.

Stochastic is indicating oversold conditions and is turning higher to show a return in bullish pressure. This also supports the scenario that bitcoin price could make another test of the range resistance or even push for a break higher. If so, the cryptocurrency could climb by the same height as the range formation.

A small double top pattern can be seen with the neckline at the moving averages or $642, which means that a break below this area could confirm the potential selloff back to the bottom of the range.

Bitcoin Price Technical Analysis for 10/17/2016 - Breakout Brewing?

Bitcoin Price Technical Analysis for 10/17/2016 - Breakout Brewing?

Market Events

Last Friday’s U.S. economic releases failed to spark stronger moves for bitcoin price, although it did manage to help dollar bulls put up a fight and defend the range resistance. The results were mostly stronger than expected, as core retail sales and PPI figures suggested stronger consumer spending and inflationary pressures.

This week, there’s not much in the way of U.S. data so traders could take their cues from overall market sentiment. There are a couple of central bank decisions lined up, as well as top-tier releases from the U.K. which could contain early indications of a slowdown after the Brexit vote. Apart from that, the U.K. parliament debates on how to go about the Brexit negotiations could also influence market sentiment and bitcoin price action throughout the week.

Charts from SimpleFX

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