Bitcoin Price Key Highlights
- Bitcoin price surged to new record highs once more, closing in on the $10,000 major psychological level.
- Price could be due for a pullback, however, as oscillators are reflecting overbought conditions.
- If so, bitcoin price could draw support from the ascending trend line connecting the lows since the middle of this month.
Bitcoin price has skyrocketed to new all-time highs and may be within striking distance of the $10,000 mark.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. The short-term moving average also lines up with the ascending trend line, adding to its strength as a floor around $8400.
Stochastic has been indicating overbought conditions for quite some time, and so has RSI. This means that buyers are already feeling exhausted from the climb and might be looking to book profits soon.
However, bitcoin price action at the start of this week suggests that more investors are rushing to reopen their positions after paring risk ahead of the Thanksgiving holidays.
Market Factors
Dollar weakness has carried on for the past few days as traders continued to adjust positions to account for the downbeat inflation outlook shared by Yellen and most FOMC policymakers.
But what might have driven bitcoin price much higher in the past few days was mostly retail activity as Coinbase reportedly added 100,000 accounts from Wednesday to Friday.
Although many are still calling this a price bubble, optimism remains high that CME bitcoin futures can be launched before the end of the year, possibly drawing more retail investor activity and pushing bitcoin price even past the $10,000 barrier.
Currently, the market capitalization for all cryptocurrencies is currently at roughly $301.5 billion and bitcoin holds the bulk at around $160 billion. This has left its rivals eating dust and could lead investors to move their funds back to the core version in the coming days.
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