Bitcoin Price Technical Analysis for 05/09/2017 – How High Can It Go?

By May 8, 2017 Bitcoin Business
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Bitcoin Price Key Highlights

  • Bitcoin price recently broke past its symmetrical triangle or bullish flag consolidation pattern.
  • This signals that bulls are very much in control of price action as they anticipate SEC approval for the bitcoin ETF.
  • Financial deregulation has been the talk of the town in Wall Street recently after the SEC confirmed its new head.

Bitcoin price looks poised for more gains as it set yet another record high and appears to be gunning for $1700.

Technical Indicators Signals

The 100 SMA is safely above the longer-term 200 SMA on the 1-hour time frame, confirming that the path of least resistance is to the upside. Price also bounced several times off this dynamic support area, which indicates that it holds up pretty well as near-term support during pullbacks.

However, the gap between the moving averages is narrowing to reflect slowing bullish pressure so another correction could be underway. In addition, stochastic is already indicating overbought conditions to show that bulls need a break. Once the oscillator turns lower, sellers could regain control as traders book profits.

RSI is also approaching the overbought zone to reflect rally exhaustion, but this oscillator has yet to turn lower before indicating that bears are gaining the upper hand. Potential pullback areas are around the $1600 major psychological mark or the 100 SMA at $1550.

Market Events

In the absence of top-tier economic data from the US, investors turned their focus to headlines pertaining to reforms by the Trump administration. Recall that the healthcare bill has just recently passed Congress and is now with Senate, and that the next item on the agenda is financial deregulation.

Now this could mean a lot of upside potential for bitcoin price as the newly-confirmed SEC head has been told by Trump to loosen rules in the industry while implementing stricter supervision of the banking sector. This has raised speculations that the regulator could be more lenient in approving the COIN bitcoin ETF, which might drastically boost interest and volumes in the cryptocurrency industry.

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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