Bitcoin Price Technical Analysis for 01/17/2017 – Calm Before the Storm?

Bitcoin Price Key Highlights

• Bitcoin price is still treading sideways as traders wait for more market clues after the recent selloff.
• Price seems to be trending slightly higher on the short-term time frames, hinting that bulls are intent to keep losses in check.
• Technical indicators on the 15-min chart also suggest that further gains are possible.

Bitcoin price is stuck in consolidation as a potential breakout looms with top-tier catalysts on deck.

Technical Indicators Signals

The 100 SMA crossed above the longer-term 200 SMA on the 15-minute time frame, indicating short-term upside pressure. Also, the 100 SMA has been holding as dynamic support recently, with the gap between the two moving averages growing to show stronger bullish momentum.

If so, bitcoin price could make an upside breakout from consolidation and go for a longer-term climb to the next ceiling. On the pair’s 1-hour chart, price already broke slightly above a descending channel formation.

Meanwhile, stochastic is heading up so bitcoin price could follow suit. The oscillator is already approaching the overbought region, though, so buyers might need to book profits and take a break while allowing sellers to take over. In that case, a test of the 200 SMA support near the $820 level could take place.

Market Events

Traders seem to be calming down after the recent sharp slide in bitcoin price, as the Chinese government has yet to introduce any new restrictions in cryptocurrency transactions. However, investors have also stopped short of taking any large long positions ahead of this week’s event risks.

These risks include a speech by UK Prime Minister May, which might very well determine how the government could approach its Brexit negotiations. Indications of further uncertainty and a potential slowdown in the European region could shore up demand for bitcoin as traders move funds away from traditional stock markets and currencies in search of higher returns.

Another event risk is Trump’s inauguration on January 20, which might spur profit-taking among dollar trades before the end of the week. This scenario could also prove positive for bitcoin price, depending on the extent of dollar outflows.

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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