Bitcoin Price Key Highlights
- Bitcoin price has been slowly trending higher, moving inside a rising channel visible on its 4-hour chart.
- Price just made a test of support around $410 and bounced, but it appears to be having trouble sustaining its bullish momentum.
- Price is still hovering just below the mid-channel area of interest so another test of support might be in the cards.
Bitcoin price is slowly crawling higher with the rising channel still intact, but a downside break and reversal might be looming.
Technical Indicators Signals
The 100 SMA is below the 200 SMA for now so the path of least resistance might be to the downside. However, an upward crossover appears to be taking place to show a pickup in bullish strength. If so, bitcoin price could make a stronger attempt to rally towards the channel resistance.
Stochastic is making its way down from the overbought level to show a return in bearish pressure. RSI is also heading south so bitcoin price might follow suit. In that case, price could attempt a break below the channel support around $410-415 and go for more losses until the channel lows at $380.
Data from the US economy came in stronger than expected on Friday but this didn’t appear to usher in prolonged dollar gains. The US economy added 215K jobs in March, higher than the estimated 206K gain, while average hourly earnings showed stronger wage growth of 0.3% versus the 0.2% consensus.
For this week, the FOMC minutes are up for release and this should shed more light on Fed officials’ biases and expectations for the US economy. In their recent testimonies, the outlook has been somewhat positive but Fed Chairperson Yellen’s assessment leaned more towards the downbeat side.
With that, dollar demand remains bleak, allowing bitcoin price to take advantage and stay within its uptrend channel.
Charts from Bitstamp, courtesy of TradingView