BTCUSD Price Technical Analysis: Trading Above the $900 Level

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BTCUSD has been unstoppable in its climb, as a combination of low liquidity and anti-dollar sentiment lifted the cryptocurrency past the $900 level. This follows a break past the $800 psychological barrier and long-term ceiling, which confirmed that bitcoin is on its way for more gains until the end of the year.

After successfully breaching $900 in its climb, BTCUSD made a quick pullback as traders likely booked some profits ahead of Christmas Day. Price found support at the $870 area before resuming its climb above $900 and setting its sights on the recent highs around $920. A break past this area could open the door for more gains until $950 or $1,000.

The 100 SMA is above the longer-term 200 SMA on the 4-hour chart, which means that the path of least resistance is to the upside. The gap between the moving averages is getting wider so bullish momentum is strengthening, likely giving BTCUSD more energy to brush past the nearby resistance levels.

RSI is also turning higher, indicating that buyers are in control of price action for now. Stochastic is also pulling up from the oversold region to confirm that the retracement is over and that bullish pressure has returned. However, if the $920 level keeps gains in check, BTCUSD could make another pullback to the $900 level or until $870. A break below this area could pave the way for a larger retracement closer to $800 or the moving averages.

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Uncertainty has lingered in the financial markets after the recent terror attacks in Berlin and Ankara. This has been complicated by US-China tensions after the latter seized a US drone off the South China Sea and talks of a revival of the nuclear arms race between US and Russia. To top it off, the Russian military plane crash has also added to investor jitters.

US equities have also had trouble sustaining their impressive rallies from earlier in the month, signaling that investors are starting to rethink how Trump’s policies might really impact the domestic and global economy. Renegotiating trade deals and imposing higher import taxes could have repercussions on the business sector and trade relations so investors seem to be steering clear of equities and fiat currencies for now.

 

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With an upbringing rooted in deep ethical values, Yashu Gola knows how to put honesty and dedication into his articles. This young and dynamic financial analyst has done his graduation in IT engineering. His interests in financial writing have once brought him to our digital doorsteps. Since then, he has been an integral part of ForexMinute.com and writes the most captivating news-articles on the foreign exchange industry, cryptocurrencies, and medical marijuana trading.