Technical analysis for Bitcoin 12/01/2017 Short — term downtrend.
The price of bitcoin started to decline after profit taking and the return of dollar demand, but today the course began to grow and at the time of writing has reached 10288.
Basic moments
The bitcoin price started to decline as a large number of traders started fixing profits after the recent rally, but the resumption of the upward trend is already evident.
The price is traded in a downlink with a 1-hour period and tests the resistance.
If the upward movement continues, the rally may resume to 10,800 dollars.
Technical Indicators
100 SMA are still above the long-term 200 SMA at this time interval, so the path of the least resistance is directed upwards. This means that it is still possible that the bitcoin price will overcome resistance and resume a long-term recovery. However, 100 SMA also support dynamic resistance.
Stochastic moves down to show that sellers control the price action. RSI is stepping aside to signal the consolidation of potentials.
Market factors
The dollar is slowly recovering, as the Senate advances with voting on the draft law on taxes. After passing the budget committee of the Senate and seeing a positive review of the JCT assessments, the bill also received support from Senator John McCain, who was seen as the main catalyst for the recent dollar rally.
Further progress in this respect may lead to a decrease in the price of bitcoins to the dollar, as traders recover their long positions in US dollars. In addition, the US economy data were mostly optimistic and reflect some progress towards higher inflation.
Nevertheless, there is a possibility that geopolitical risk can raise the rate of crypto currency, because Trump wants to replace Secretary of State Tillerson and apply less diplomatic tactics to North Korea.
Usually, this increases the growth of courses of crypto-currencies, such as bitkoyn, as traders expect higher incomes, but in alternative markets outside the traditional share and commodity markets, and also reducing the risk from the dollar and the yen.
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