Bitcoin Price Super Bullish Against US Dollar (Technical Overview)

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It seems like, hell broke lose today (Thurs 22/12/2016) on the international exchange when Bitcoin (BTC) surged pass $800 and climbed up more than $50 towards $850 and above. As of publishing this post, I’m looking at my screen with aw! Bitcoin broke pass another strong resistance of $865 and is hovering in the $866 area.

xbt-usd-chart-22dec2016
Chart courtesy of xe.com

When it comes to understanding a particluar commodity’s price movement, I like to weigh in fundamentals and technicals together. Aayush Jindal broke down the technical understanding beautifully.

He says,

“Bitcoin price posted heavy gains against the US Dollar, and it looks like the current trend for the BTC/USD pair is super bullish.

Bitcoin price uptrend

Recently, we saw how there was a crucial break in Bitcoin price against the US Dollar. The BTC buyers managed to overcome all odds and cleared a major barrier at $800. It was a super strong resistance, and acted as a resistance on many occasions. Once there was a break, it meant that the price may surge higher. The price did move higher and posted gains more than $50.

All current timeframe charts point a strong bullish trend for BTC. The price recently traded above $860. On other brokers it is above $840, and about to challenge $850. Currently, it looks like the price is trading in a range and consolidating. So, there is a chance of a minor correction in the short term. In that case, there is a connecting bullish trend line on the hourly chart of BTC/USD.

Key points

  • Bitcoin price surged higher against the US Dollar to challenge the $850-60 area.
  • Once there was a break above the $800 handle, the BTC buyers took control and took the price higher by $50.
  • If the price corrects lower, then there is a bullish trend line on the hourly chart of BTC/USD waiting at $850 to act as a support.

btc-support-resistance-line

The trend line support also aligns with the 38.2% Fib retracement level of the last leg from the $841 low to $864 high. If you are looking to buy, then consider it on dips near the trend line support.

Looking at the technical indicators:

-> Hourly MACD – The MACD is super bullish, and suggesting more gains.

-> Hourly RSI (Relative Strength Index) – The RSI is well in the overbought levels, and may ignite a correction.

-> Major Support Level – $850

-> Major Resistance Level – $865

Looking at the fundamentals:

Here’s what some of the experts are saying:-

-> Yuan-to-Bitcoin correlation.

-> Exposure of bank corruption.

-> Increasing demonetization of cash.

-> Restriction on physical assets.

In an interview, Charles Hayter, chief executive and founder of digital currency comparison website CryptoCompare, stated:

“The rally is difficult to pin down as there are a number of contributing factors that include the global economic and political shifts underway with (President-elect Donald) Trump and the Eurozone with Bitcoin becoming a digital hedge and flight to safety.”

Other experts are hinting that the devaluation of the Chinese yuan and the local government’s increasing capital controls played a vital role in the rising price of Bitcoin.

My view: short term

From what I’m seeing, and based on the above findings, Bitcoin is poised to climb up further. There is going to be some outflow of cash from China, which will surge amid the upcoming new year, which will once again increase the demand for Bitcoin. So, is it possible for BTC to hit $1000 by end of 2016? I don’t know. Maybe! But sentiment is very bullish right now. Stay tuned for more tomorrow.

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. Bitcoinfuss.com or its author(s) do not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Charts & data feed courtesy of simpleFX, newsbtc & cointelegraph.

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2 Comments

  1. From all indications 2016 has really been a revival year for Bitcoin and its possible by next year the demand for Bitcoin might be on the increase. This may further give rise to the value of Bitcoin. But some experts have annulled the perception of Bitcoin gaining more momentum ahead of other currencies. Let’s see how it goes. But for me, I think Bitcoin will climb further.

  2. Well, I have a contrary view. I think China will not sit and watch their currency remain devalued more. I predict China currency returning to normalcy. If that is a major boost for bitcoin, then we should expect a fall in bitcoin. 2017 will tell a different story, that’s my take.

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