Bitcoin Price Technical Analysis for 16/05/2017 – Testing Nearby Support

Bitcoin price could be due for a bounce from this short-term rising channel support as technical indicators suggest more gains. 

 

Bitcoin Price Key Highlights

• Bitcoin price continues to gain bullish traction even as it tests support of the rising channel on the 1-hour time frame.
• A bounce off this area could lead to another climb to the resistance at $1180 or higher.
• A break below the channel support could lead to a larger correction or a potential reversal from the climb.

Bitcoin price could be due for a bounce from this short-term rising channel support as technical indicators suggest more gains.Technical Indicators SignalsThe 100 SMA is safely above the longer-term 200 SMA so the path of least resistance is to the upside. The gap between the moving averages has been steady so there are no signs of a potential crossover or reversal yet. In addition, the 100 SMA is close to the channel support, adding an extra layer of defense for bulls in case bitcoin price spikes down.Stochastic is on the move up to show that buyers are in control of bitcoin price action and could be strong enough to push for a climb to the resistance. RSI is also heading north so bitcoin price might follow suit. Once both oscillators hit the overbought region and turn lower, selling pressure could pick up. 

Market EventsInvestors seem to be reestablishing their long bitcoin positions as concerns over the hard fork and potential incompatibilities appear to be subsiding. A consensus has been reached among developers to merge existing versions of the software by July 4, 2017 while some exchanges and nodes have reportedly rejected the newer version.News that Japan has officially accepted bitcoin as a legal form of payment has also been positive for the cryptocurrency, perhaps setting the stage for other governments or monetary authorities to follow suit. Kim Dotcom’s new bitcoin venture for content uploaders is also renewing investor interest and demand for the digital currency.