Bitcoin remains supported inside LT channel
Another week is about to draw to a close and it has been a very good one for the US dollar, which broke out against a number of currencies, most notably the euro after a dovish taper of QE by the ECB. Friday’s stronger-than-expected US GDP boosted expectations that the Fed will hike rates one more time before the year is out. This week has also been good for European indices, except in Spain where the Catalonian government declared independence. US technology companies reported excellent earnings results, causing their share prices to surge which led to the tech-heavy Nasdaq 100 roaring higher on Friday. Gold managed to bounce back on Friday in what has otherwise been a bad week. The dollar-denominated precious metal has been undermined by rising levels of risk appetite and a rebounding greenback. This may also be why Bitcoin’s rally has paused. Still, Bitcoin remains in strong demand and may continue to outperform as many see the crypto currency as a viable alternative to fiat currencies.
Bitcoin continues to trade near the top of its bullish channel, which goes to show it remains supported despite the dollar’s recovery. A consolidation here would be welcomed by even die-hard bulls, as this will allow momentum indicators such as the RSI to unwind form “overbought” levels. Key support comes in between 4880 and 4980. I will remain bullish while this level holds. Even then, the longer term outlook would remain positive for as long as price remains within its bullish channel. On the upside, Bitcoin fell just short of hitting the 161.8% Fibonacci extension level at 6235 last Saturday, before easing back a little. This level remains one of my bullish objectives. Beyond this level, I will be targeting round psychological levels next.
Bitcoin continues to trade near the top of its bullish channel, which goes to show it remains supported despite the dollar’s recovery. A consolidation here would be welcomed by even die-hard bulls, as this will allow momentum indicators such as the RSI to unwind form “overbought” levels. Key support comes in between 4880 and 4980. I will remain bullish while this level holds. Even then, the longer term outlook would remain positive for as long as price remains within its bullish channel. On the upside, Bitcoin fell just short of hitting the 161.8% Fibonacci extension level at 6235 last Saturday, before easing back a little. This level remains one of my bullish objectives. Beyond this level, I will be targeting round psychological levels next.
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