Bitcoin Price Technical Analysis for 02/22/2017 – Quick Countertrend Play

Bitcoin Price Key Highlights

• Bitcoin price is still trending higher and has hit the channel resistance around $1100 as previously predicted.
• Price is now hovering at the ascending channel resistance at which plenty of limit orders are located.
• This has allowed the resistance to keep gains in check for the time being as traders might be booking profits off previous long plays.

Bitcoin price is finding resistance at the top of the ascending channel and might have room for a pullback to support.

Technical Indicators Signals

The 100 SMA is still above the long-term 200 SMA so the path of least resistance is to the upside. In addition, the gap between the moving averages is widening so bullish momentum is getting stronger. The 100 SMA coincides with the channel support at $1050, adding to its strength as a floor in the event of a pullback. A larger correction could still find support at the 200 SMA dynamic inflection point but this might be the line in the sand for the uptrend.

Stochastic made it to the overbought territory and is now heading south, indicating a potential return in selling pressure. In that case, bitcoin price could retreat off these highs and return to a level where more buyers are waiting. Similarly, RSI is turning lower to suggest a pickup in bearish momentum as well.

Market Events

Demand for bitcoin continues to pick up as traders are digesting the global uncertainties, particularly in the European region, and shrugging off the recent jitters from Chinese regulatory activity. So far, there have been no major reports of increased regulation or penalties on exchanges and clients so investors from the mainland are reviving their confidence in the bitcoin market.

Over in the US, anticipation for the bitcoin ETF approval for the Winklevoss twins’ COIN fund is also shoring up demand for the cryptocurrency. If this passes through SEC without additional requirements, it could increase market liquidity dramatically and ramp up interest among institutions and individuals.

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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