Bitcoin Price Key Highlights
- Bitcoin price is moving in an ascending channel on its 4-hour chart but has a steeper channel on its 1-hour time frame.
- Price is bouncing off the channel bottom and might be due for a climb to the resistance at the $1400 handle.
- Technical indicators are giving mixed signals at the moment so it’s unclear whether bulls can stay in control or not.
Bitcoin price continues to show upside momentum but there are signs that buyers are starting to get tired.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is still to the upside. In other words, the channel is more likely to hold than to break. However, the gap between the moving averages is narrowing so a downward crossover and pickup in selling momentum could take place soon.
Also, stochastic is turning lower from the overbought zone to show that sellers are trying to regain control of bitcoin price action while buyers take a break. Similarly, RSI is also heading south so bitcoin price might follow suit.
Market Events
Risk appetite seems to be returning to the markets as investors are still reacting to the French elections first round results and predicting that Macron could win the entire thing, which would make a Frexit unlikely. Meanwhile, the snap elections in the UK in a couple of months is keeping optimism in play that the economy could have a better bargaining position in Brexit negotiations.
Another factor that could bring BTCUSD down is the highly-anticipated tax reform announcement by the Trump administration in today’s US trading session. If this is enough to usher in stronger gains for US companies and stock indices, the dollar could regain a lot of lost ground on renewed expectations of a stronger US growth and two more Fed rate hikes this year.
A move below the 1-hour moving averages at $1340 and $1310 could be enough to confirm that bearish momentum is taking hold and that a test of the 4-hour channel support is in the cards.
Charts from SimpleFX