Bitcoin Price Technical Analysis for 03/08/2018 – Bears Fighting Back!

Bitcoin Price Key Highlights

  • Bitcoin price has moved closer to testing the neckline of its double top pattern highlighted earlier.
  • A break below this support zone could push price by around $2,000 lower or the same height as the chart formation.
  • Technical indicators are also hinting at a potential pickup in bearish momentum.

Bitcoin price might be due for a downside break from the neckline of its short-term reversal pattern to signal a return in bearish pressure.

Technical Indicators Signals

The 100 SMA is starting to cross below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, support could be more likely to break than to hold.

Stochastic also seems to be pointing down to signal that there’s some bearish pressure left in play. RSI, on the other hand, is already indicating oversold conditions so buyers might take over soon.

In that case, bitcoin price could still bounce off the $9,500 support to revisit the highs around $11,700. Stronger bullish momentum could even lead to a break past that area and a continuation of the longer-term climb.

Market Factors

The US dollar staged a strong rally versus its rivals on easing trade war concerns when Trump showed willingness to exempt Canada and Mexico from higher tariffs on steel and aluminum.

Stocks staged a late rally but most still ended in the red. Bitcoin, however, was more vulnerable to dollar strength as risk-taking is proving negative for the cryptocurrency once more. By the looks of it, bitcoin price could draw strength from a return in geopolitical tensions and risk aversion.

Besides, the SEC said in a statement that online platforms trading digital assets that are considered securities need to register with the agency.

“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”

Jai Kumar
Jai Kumar got into Bitcoin while completing his Master's degree. He is writing about anything crypto-related which makes him sit up and pay attention.

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