Technical analysis on Bitcoin 27.11.2017. $10 000 does not seem a fantasy
The price bitcoin sharply increased to new record highs and came very close to the mark of 10 000 dollars. At the time of writing, the price was at the level of 9650 dollars.
Basic moments
The price bitcoin again rose to new record highs, aiming at the main psychological level of 10 000 dollars.
After reaching this important level, there may be a correction, as the oscillators show overbought conditions.
If this happens, then the bitcoat price can get support from an uptrend line connecting the lows from the middle of this month.
Technical Indicators
100 SMA exceeds 200 SMA, showing that the path of the least resistance is directed upwards. The short-term moving average also corresponds to the line of the uptrend, adding to its strength support around $ 8400.
Stochastic for some time shows the state of overbought, the same thing happens with RSI. This means that buyers already feel exhausted from the ascent and can count on an early fixation of profits.
Nevertheless, the effect of the bitcoin price at the beginning of this week suggests that more investors are rushing to reopen their positions after the risk of decline has been virtually leveled off on holidays.
Market factors
The weakness of the dollar continues over the past few days, as traders adjust their positions to take into account the gloomy outlook for inflation announced by Yellen and most of the FOMC policy makers.
But in the last few days the price of bitcoin is much higher than predicted by analysts, Bitcoin adoption is growing everywhere, mainly in stock markets, and as reported only Coinbase added 100,000 accounts from Wednesday to Friday.
While many still refer to Bitcoin take-off as a price bubble, optimism remains high, as it is expected to introduce CME futures, which may be launched before the end of the year, increasing the activity of retail investors and raising the price of bitcoin even beyond a $ 10,000 barrier.
Currently, the market capitalization of all crypto-currencies is about 301.5 billion dollars, while bitcoin is about 176 billion dollars. This is likely to lead to the fact that its competitors Bitcoin far behind, which can force investors to transfer their funds back to the main version in the coming days.