Bitcoin’s price is holding above the $35,000 level, but positive momentum has slowed over the past week according to technical indicators. The world’s largest crypto asset by market capitalization closed at $35,369 on November 8.
As Global Markets Show Mixed Signals, Bitcoin Rally Takes a Breather Above $35,000
Global markets fluctuated on Wednesday, November 8, 2023, as investors await remarks from U.S. Federal Reserve chairman Jerome Powell later today. Traders have attempted to determine how forcefully central bankers will counteract the recent decline in Treasury bond yields. Currently, cryptocurrency markets remain steadfast, with bitcoin (BTC) persisting above the $35,000 mark.
The relative strength index (RSI), a momentum oscillator that measures the speed and change of recent price movements, currently sits at 77 which is in overbought territory. This suggests downward pressure on the price in the short term. The Stochastic oscillator is showing a reading of 75, indicating the confirmation of overbought levels. Meanwhile, the commodity channel index (CCI) is at 76, reflecting the recent upward price action.
Bitcoin’s moving averages paint a bullish picture in both the short and long term. The 50-day exponential moving average (EMA) currently sits at $31,113 while the 50-day simple moving average (SMA) is at $29,927, with prices comfortably above both averages. The 100-day exponential moving average is at $29,612 and the 100-day simple moving average is at $28,562. BTC is trading well above these mid-term averages and resistance points.
The long-term moving averages also provide significant levels of support. The 200-day exponential moving average is at $28,327 and the 200-day simple moving average is at $28,512. Bitcoin’s ability to hold above these levels reflects sustained buyer interest during the past seven days. However, the overbought readings on momentum oscillators suggest some consolidation or a minor pullback could occur before BTC can make another leg higher.
Overall, Bitcoin’s technical picture remains constructive but looks due for a pause or minor correction after the recent rally. As long as the price holds above the key $30,000 support level, the longer-term uptrend remains intact. However, a break below $30,000 would put the bulls back on the defensive.
Register your email here to get weekly price analysis updates sent to your inbox:
What do you think about today’s bitcoin price action? Share your thoughts and opinions about this subject in the comments section below.