Bitcoin continues to Trade Steadily
The benchmark bitcoin market, BTC/USD, continues to trade within its descending channel. The digital currency is challenging the channel resistance. Should this occur, on a daily closing basis, then this could indicate a longer term uptrend in play.
Price action, in this market is currently following the upper barrier of the above mentioned downward sloping trend channel. This level, today is around $8,000. Right now price is above this level near $8,700. Traders should watch the resistance levels that line up between $9,000 and the key psychological and former support barrier at $10,000. The latter will be a strong barrier to overcome and would take a significant amount of volume to break.
Right now the 100 day moving average is above the 200 day moving average. This would suggest the path of least resistance is in favor of the bulls, for now. The 200 day moving average is also acting as a solid layer of support to hold any moves lower.
Taking a look at stochastic indicators, for today, they also indicate that the bulls are in the game for now. The relative strength index (RSI) is inching higher from oversold. This is supporting buyers of the cryptocurrency. Also the gap between the two above moving averages has widened helping to support the theory that there is room for upside in the BTC/USD market.
Looking at the economic calendar, that could affect either bitcoin or the U.S. dollar, there are no major events today or for the rest of the week lined up. This means that this market could follow sentiment in the global equities market, as well as some drifting. Still, investors are still worried about tightening of monetary policy with global reserve banks. This has caused for a great deal of volatility over the last two weeks or so.