Bitcoin is still enjoying bullish momentum as it broke past the $9000 mark and is nearing $10,000. Price could find resistance around this area, which previously held as support and resistance.
The 100 SMA is crossing above the longer-term 200 SMA, though, so the path of least resistance is to the upside. This suggests that the uptrend is more likely to continue than to reverse. But if the area of interest keeps gains in check, price could retreat to the inflection points at the moving averages.
Stochastic is pointing up to show that there’s some bullish pressure left but the oscillator is nearing overbought conditions to reflect exhaustion among buyers.
Remarks from the Federal Reserve Bank of St Louis on bitcoin turned out positive for the cryptocurrency as the report showed that they believe there is demand for virtual currency that is issued by a trusted party and can be used to save outside of the private financial system. Furthermore it stated:
“On the one hand, governments can be bad actors and, on the other hand, some citizens can be bad actors. The former justifies an anonymous currency to protect citizens from bad governments, while the later calls for transparency of all payments. The reality is in between, and for that reason we welcome anonymous cryptocurrencies but also disagree with the view that the government should provide one.”
Bitcoin is still riding from the rally after the tax season as investors reopen positions to profit from the new developments in the industry. Sentiment has been more and more positive over the past couple of weeks, driven by news of big hedge funds investing in the space and acquisitions by well-known entities.
Looking ahead, an extension of risk-taking int he markets should prove more bullish for bitcoin, with more and more analysts predicting that bitcoin could surpass its $20,000 highs soon.
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