Daily bitcoin price update and what to expect today?

Daily Bitcoin Update

After testing and temporarily breaking the support level of 350 last week, the bitcoin price advanced very cautiously over the weekend on low trading volumes, giving of some notable buying signals in the process. By the time the Sunday trading session came to a close, the price was above the 200-, 100- and 50-hour SMAs, while the RSI was above 55 on the 4H chart. Overall, these price movements indicated near-term bullish momentum in the market, but breaking the 365 resistance level was proving difficult.

As a result, in our report yesterday we called the market neutral and ever so slightly favored a bearish scenario over a bullish one based purely on the historical form of the bitcoin market. Against our expectations, the bulls emerged victorious in the battle to break out of the 350 to 365 price range and look to have built some real momentum heading into today’s session.

Coindesk presented an interesting argument hereyesterday suggesting that bitcoin is poised to stay bullish for the long term, with their key thesis centering on the Chinese, Korean and Japanese central banks attempts to devalue their currencies and thereby stave of low inflation and boost their economies. Given that yuan, yen and won traders are big players in the bitcoin space, the article argued that a reduction in the values of these currencies against the USD has the potential to make bitcoin an even more attractive investment for these traders, boosting bitcoin demand and driving up its price.

Interesting idea, but one that needs to be taken with a healthy dose of ‘beware’.

November 24th Bitcoin Trading Session

The BTC/USD opened the session at 369 on the Bitfinex 4-H chart after forming a price bottom around the 350 level last week. The price moved up over the day in the absence of any serous selling pressure, holding above the daily moving average and even moving above the upper Bollinger Band, indicating a strong buying presence in the market. There have been virtually no attempts at a price correction to date, with the price continuing to trend upward and sitting in overbought territory. The RSI is nearing 70, providing further evidence of strong bullish sentiment.

What to Expect Today?
Had the price failed to break through the 375 resistance level during yesterday’s session we would have been inclined to favor a bearish bias in the market today, but with every key resistance level being broken over the last 24 hours the price has entered into a non-corrective bullish channel. The next test is the 390-400 area: if the market can break through this, then the early November peak of 453 is firmly in sight; if not, then the bears could drag the market back to around the next key support level of 360.

Conclusion
Current Mood: Bullish on Daily Charts
Moving Averages: Buy (8 Buy, 4 Sell)
Technical Indicators: Sell (3 Buy, 5 Sell)

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