Bitcoin Price Key Highlights
Bitcoin price made another break higher over the weekend, indicating strong bullish momentum.
Price is now testing another long-term area of interest around $700, at which either profit-taking or another upside breakout might be seen.
Technical indicators are hinting that the rallies could pause but it would be helpful to look at the next potential resistance levels.
Bitcoin price has shown strong upside momentum over the past few weeks and might be eyeing a test of these next ceilings. Technical Indicators Signals
The 100 SMA is above the 200 SMA for now so the path of least resistance is still to the upside. However, the gap between the moving averages is narrowing so a downward crossover might be possible, hinting at a potential return in bearish pressure.
In that case, bitcoin price could retreat from the current area of interest for a quick pullback to the nearby support at $500. RSI is also indicating overbought conditions, which means that buyers are exhausted and might let sellers take over from here.
Similarly, stochastic is in the overbought area but hasn’t crossed lower yet. This implies that while the rallies may be overextended, bulls aren’t quite ready to give in just yet and might have enough energy to take bitcoin price up to the next ceiling at $900-$1,000. Market Events Several uncertainties in the financial markets have drawn more and more traders to bitcoin last week. For one, this may have been a result of market watchers moving money out of the US dollar in anticipation of downbeat remarks from the FOMC statement this week. Keep in mind that the latest US jobs report was a huge disappointment so Fed officials could dial down their hawkish bias.In addition, downbeat data released from China over the weekend […]
