Bitcoin Price Analysis: Bitcoin May be Set for a Correction Rally 

Reddit co-founder praises Bitcoin, says it's a store of value against hyperinflation; to fuel new internet

Bitcoin has had better days with the recent price dip it has suffered over the last few weeks. However, the new price action indicates that the price may reverse soon. Although the uptrend has not yet been confirmed, price charts have shown that a bullish momentum is at hand.

What Do the Technical Charts Indicate?

From the technical indicators, the 200 long term SMA is above the 100 SMA. This signals some resistance in the downside. It also suggests that the sell-off may resume before a reversal is complete.

The gap between the two moving averages has gone narrow enough to signal a bullish crossover. BTC is trading above the moving averages to show bullish momentum. The 100 SMA and 200 SMA may serve as dynamic support levels.

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The relative strength index is pointing up but has not hit the oversold levels yet. This suggests that the buyers are eager to retake the market. If it breaks past the $7,600 neckline, the price of BTC may climb.

Over the past few days, BTC has battled with a lot of negative and positive comments from within and outside the cryptocurrency industry. While some critics have had negative things to say about Bitcoin, true believers haven’t given up on the leading cryptocurrency just yet.

The charts today show that the cryptocurrency may gain ground again. It’s possible that the traders are withdrawing their profits and replacing their capital as a new month begins.

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The USD is weak thanks to the Government’s new laws. The recent laws requiring higher tariffs for aluminum and steel importations from Canada, Mexico and the European union may have contributed to weakening the USD. It led to retaliation from trade allies and if it continues like this global trade activity and growth may be affected.

This new month may bring about new catalysts. Investors and industries are still optimistic for now but the next few weeks may be different. Moving ahead, the NFP report may influence the price action of the USD before next weekend.

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