Bitcoin Price Technical Analysis for 12/13/2017 – Another Major Pullback?

Bitcoin price remains afloat but could use a major pullback to draw more bullish momentum in.

Bitcoin Price Key Highlights

  • Bitcoin price continues to soar higher but is stalling at the top of its ascending channel on the 1-hour chart.
  • A bounce off the resistance could lead to a large pullback to support or any of the nearby Fib levels.
  • Technical indicators are showing that the longer-term climb could carry on.

Bitcoin price remains afloat but could use a major pullback to draw more bullish momentum in.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. This means that the uptrend is more likely to continue than to reverse. However, the gap between the moving averages is narrowing to reflect slower bullish momentum.

The 100 SMA is close to the 50% Fib retracement level, adding to its strength as support. A larger pullback could last until the 61.8% Fib around $1500 and the channel support, which is also near the 200 SMA dynamic inflection point.

RSI is heading down for now to reflect profit-taking among buyers. Stochastic also seems to have some room to tumble before hitting oversold levels and turning back up.

If any of the Fib levels hold as a floor, bitcoin price could resume its climb to the swing high and beyond. A break below the $14000 level, on the other hand, could mark the start of a longer-term drop.

Market Factors

The dollar has been putting up a really good fight against its peers as positive expectations for the FOMC statement and tax reform are propping the currency higher. Senators and members of the House of Representatives are working on merging their respective versions of the tax bill and, according to Majority Whip Senator Cornyn, they could come up with a deal before Christmas.

Meanwhile, bitcoin price is enjoying strong support from rising investor interest on the heels of the CBOE futures launch. CME and Nasdaq will launch their own bitcoin futures soon and could benefit from increased activity at higher volumes.

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