Bitcoin Price Key Highlights
- Bitcoin price has been on a steady decline, erasing most of its sudden gains from earlier in the month.
- Although bears still seem to be in control, selling pressure could fade once bitcoin price hits support at the $300 mark.
Bitcoin price could be due for a quick bounce if profit-taking takes place around the nearby major support zone.
Technical indicators seem to be indicating that bearish momentum could stay in play for much longer, as the short-term 100 SMA is below the longer-term 200 SMA. Stochastic is pointing down once more, after briefly exiting the oversold zone, suggesting a return in selling pressure.
RSI, on the other hand, is on its way up. This suggests that buyers might be ready to hop in once sellers take a break, possibly allowing the $300 area to hold as support and trigger a bounce up to the area of interest around $315-320.
A break below support could spur prolonged declines for bitcoin price, potentially taking it this year’s lows around $210. Dollar strength still seems to be a major theme in the markets these days, even though the latest retail sales report from the US indicated a slowdown in consumer spending.
Investors are widely expecting the US central bank to hike interest rates in December, as more signs of progress in the labor market has been seen. If so, this could lead to a strong boost in dollar demand and value, yielding a bitcoin price tumble in the process. The Fed is set to print the minutes of their latest monetary policy meeting this week and more hawkish hints from policymakers could continue to uplift the US dollar over bitcoin around the middle of the week.
Intraday support level – $300
Intraday resistance level – $340
Technical Indicators Settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
Charts from BitStamp, courtesy of TradingView