Bitcoin Price Key Highlights
- Bitcoin price continues to consolidate inside its rising wedge formation visible on the 1-hour chart.
- Price has bounced off support to test the resistance and is now back to the bottom once more.
- Technical indicators appear to be suggesting that the uptrend is more likely to resume than to reverse.
Bitcoin price is still consolidating inside its rising wedge formation but may be due for a breakout soon.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that support is more likely to hold than to break or that an upside wedge breakout is more likely to happen than a downside move.
In that event, bitcoin price could climb by the same height as the wedge pattern, which spans $5,800 to $6,800. Similarly a downside break could be followed by a selloff of the same size, although the 200 SMA dynamic inflection point could still keep losses at bay.
RSI appears to be turning higher without hitting oversold levels to indicate that buyers are eager to return. Stochastic also seems to be pulling up so bitcoin price could follow suit as bullish pressure returns.
Bitcoin price action has been a bit more subdued than usual, perhaps owing to the market holiday in the US. Once traders return, a breakout from this wedge pattern could ensue, although the direction still largely depends on sentiment or any catalysts.
The FOMC minutes are up for release this week and could contain more clues on Fed tightening expectations, likely setting the tone for USD direction. Later in the week, the NFP release might also be a major catalyst for the dollar. Strong jobs data, along with a hawkish Fed bias, could prove more bullish for the dollar than bitcoin price.