Bitcoin Price Technical Analysis for 12/08/2017 – Riding on Small Dips

Bitcoin price is once again setting new records but the chance for sharp profit-taking moves is building as it climbs.

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Bitcoin Price Key Highlights

  • Bitcoin price has been on a tear and seems unstoppable in its climb.
  • Price has barely retraced from its rally, but potential dips on short-term time frames can be spotted.
  • But with bitcoin price surging to unprecedented levels at an unprecedented pace, there’s a rising risk of a tumble as it goes.

Bitcoin price is once again setting new records but the chance for sharp profit-taking moves is building as it climbs.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA across all time frames, indicating that bullish momentum is very strong. The gap between the moving averages has also been widening to reflect strengthening bullish pressure.

On the 15-minute chart, it can be seen that bitcoin price is trading above an ascending trend line. Price has just made another bounce to new highs but might be due for another dip soon.

Stochastic is indicating overbought conditions once more and is starting to turn lower, possibly drawing some sellers back in. RSI has a bit more room to climb so bitcoin price might break out of the tiny consolidation to set new highs yet again.

Market Factors

Anticipation is building up over the launch of CBOE bitcoin futures, drawing an influx of demand from retail and institutional investors. Apart from that, the fact that bitcoin is hogging the financial headlines once more on its stellar climb has drawn more market interest.

Of course, as it establishes one new high after another, bitcoin price is seen as being more and more vulnerable to a crash. Nonetheless, price seems indifferent from these naysayers and continues climbing, especially as there seems to be no catalysts that could lead to unwinding.

CME and Nasdaq are also prepping to launch their bitcoin futures products soon, which means more availability and higher volumes. In the past, this has consistently led to strong gains and this phenomenon could carry on until the situation changes.

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