Bitcoin Price Analysis- With bitcoin price hitting the mark of $11k, it is more likely that the pullback has been realized. We still maintain a bullish bias and see a good opportunity to enter a long trade on a possible pullback to the nearest support at $10,164.
Bitcoin Price Analysis: What will be the Bitcoin Price Trend?
The past week had been a good one for the Bitcoin with its price hitting the $10,800 level. Apart from bitcoin, other cryptocurrencies such as Ethereum that is riding at $943 and ripple at $1.15 among others are also going through an upward trend.
However, the current bitcoin rebound has stalled at the $10,800 retracement level which at this point is the main resistance level that buyers need to break and rise above. A retracement is basically a temporary reversal in the prices of a stock against the ongoing trend.
Bitcoin price analysis
Since the start of February month, the price of bitcoin is trending higher. To reach this point, bitcoin broke above a few crucial resistance levels. The bullish trend is surely retraced as it is gaining traction. It has been expected that the bitcoin price will now head to the extensions level as the price has already completed its pullback. And in order to hit the new highs, a pullback is certainly essential.
Bitcoin Technical Analysis and market sentiments
The long-term 200 Simple Moving Average (SMA) is lower than the 100 SMA that shows that the least resistance can be found on the upside. SMA is basically the sum of the closing price of particular stocks for a time period divided by the total time period. This basically tells us instead of a reverse, it is most likely that we are going to see a continuing upward trend.
However, the Relative Strength Index (RSI), that identifies the condition of oversold or overbought in the trading of an asset, of bitcoin market is going downwards. This means there is still a possibility of another breakdown.
Factors playing a crucial role for change in bitcoin price?
This positive reflection in bitcoin prices, since last week, is the result of various factors including the government of South Korea that took the route of cryptocurrency regulation but without hindering its growth among many other countries like Canada and Australia that are somewhat positive towards cryptocurrency market.
Talking about the dollar market, there have been reports of dollar gaining a bit of its value. However, there is nothing on the strengthening of the dollar value in the near future and weakness in the dollar will only drive the prices of bitcoin upwards.
Do you think bitcoin will follow a bullish trend now or is it just a temporary phenomenon? Let us know your thoughts in our comment section below!
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.