Bitcoin Chart Analysis - BTC Price Soars on Technical Breakout
Bitcoin News and Talking Points
- Bitcoin surges through the December downtrend.
- Higher prices ahead or another false dawn?
IG Client Sentimentshow that 74.0% of traders are net-long of Bitcoin but recent changes in client holdings leaves the outlook for BTC mixed. Download our free guide to see what this means and how traders can use this data to their advantage.
Bitcoin (BTC) Rally Sparks Optimism but Traders Need to be Wary
The dominant cryptocurrency Bitcoin produced a near $1,000 (15%) rally in a matter of a couple of hours, pushing the coin back above the down trend established back in late December. The technical move – no fundamental reasons were identified at the time of writing – off the lower support level has changed the technical outlook in the short-term with a close around the current levels signaling higher prices. The first upside target is situated at the top of the channel at $8,420 ahead of Fibonacci retracement at $9,385. Support remains firm at $6,400 ahead of the February 6 low at $5,932, while the relative strength indicator is pointing higher and has room to push higher.
We identified a potential Bitcoin breakout earlier this week – Bitcoin (BTC) Price Nears Bear Trend Breakout – please note we have changed charts to ProRealTime.
Traders should however be wary of the false breakout at the beginning of March which quickly reversed lower and pushed BTC back below the December down trend. The market will need consolidation at these current levels ($7,700) over the next few days to re-install confidence in the space and allow prices to run higher.
We discuss a range of cryptocurrency charts and price set-ups at our Weekly Cryptocurrency Webinar every (Wednesday) at 12:00.
Bitcoin (BTC) Price Chart in US Dollars(September 29, 2017 – April 12, 2018)
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Demo Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
What’s your opinion on Bitcoin – bullish or bearish? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at firstname.lastname@example.org.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.