Bitcoin Price Key Highlights
- Bitcoin price could be due for a reversal as an inverse head and shoulders can be seen on the 1-hour chart.
- Price has yet to break past the neckline to confirm that an uptrend is in the cards.
- Technical indicators are showing signs of a return in bullish momentum.
Bitcoin could finally be done with its slide as it forms an inverse head and shoulders reversal pattern on the 1-hour chart.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This suggests that the selloff is still more likely to resume than to reverse.
However, the gap between the moving averages has narrowed enough to signal an imminent bullish crossover. Bitcoin price is also trading above these moving averages as an early signal of bullish momentum. From here, the 100 SMA and 200 SMA could hold as dynamic support.
RSI is pointing up without even hitting oversold levels, suggesting that buyers are eager to return. Stochastic is also turning higher so bitcoin price might follow suit if this keeps up. A break past the neckline around $7,600 could lead to a climb of the same height as the reversal pattern.
Market Factors
Bitcoin has battled with its fair share of positive and negative commentary over the past few days, but it looks like the cryptocurrency could regain ground. A bit of month-end profit-taking may have also been factored in.
The US dollar is on weaker footing owing the resurfacing trade war fears, with the government imposing higher tariffs on steel and aluminum imports from Mexico, Canada, and the European Union. This has prompted retaliatory measures from its trade allies, which might then dampen global trade activity and growth.
A fresh month could bring a new round of catalysts from the industry and investors appear to be looking a bit more optimistic so far. Looking ahead, the NFP report could still influence dollar price action before the weekend starts.