Bitcoin Poised to Go Lower After Breaking Critical Trend Line

by Best Bitcoin Exchange January 8, 2018 0 comment

Bitcoin breaks the trend support line and now poised to go as low as $12700. The down move comes as a result of rising USD after USDX starts to gain some momentum following four days of consolidation at around 92.00.

US Bureau of Labor Statistics released employment report for the last month of 2017 on last Friday. According to the report, US non-farm sectors added 148K employment whereas unemployment rate stalled at 4.1%. On the other hand, average hourly earnings rose %0.3 month over month and %2.5 year over year. Just at the levels that markets anticipated.

Dollar strength attributed to the FOMC minutes published last week Wednesday rather than the employment report since the most important indicator of the report came lower than expectations. FOMC minutes of 12 -13 December meetings revealed that several FOMC members are ready to hike Federal Funds Rate more than consensus 75 bps in 2018 if inflation outlook improves in coming months.

If dollar keeps gaining traction, BTCUSD may pass few other support levels and head towards $10.000 in the medium term. In the technical perspective, moving averages still show that bullish trend is intact however RSI is just above critical 50.0 level and if this level gives away, technical traders might impose a bigger selling pressure on Bitcoin which could accelerate the fall to $10.000.

Bitcoin Analysis - 2018 01 08

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