Bitcoin Price Key Highlights
- Bitcoin price has been edging lower recently but the overall uptrend on the short-term chart seems intact.
- Price is still inside its ascending channel and is currently testing the support.
- A bounce could confirm that bulls are still in control of bitcoin price action while a breakdown would suggest that a downtrend is in order.
Bitcoin price is testing the ascending channel on the 1-hour time frame, still deciding whether to go for a continuation or a reversal.
Technical Indicators Signals
The 100 SMA is above the 200 SMA, which means that the the path of least resistance is to the upside. In addition, the 100 SMA lines up with the channel support, adding to its strength as a floor. A larger drop could still find support at the 200 SMA, which is around the area of interest at $650.
Stochastic is on its way down, which means that there’s still some selling pressure left. If bearish momentum is strong enough, bitcoin price might break below the channel support and $650 area, which would then confirm a reversal.
However, if the oscillator reaches the oversold zone and turns higher before a breakdown happens, buyers could regain control and push bitcoin price back to the channel resistance around $680 or higher.
The Bank of England’s decision to keep interest rates unchanged for now kept risk-taking in play, leaving traders to take advantage of price action in equities and fiat currencies. Still, there are plenty of uncertainties remaining since the MPC has signaled its intention to consider additional easing in August.
Also, China is set to print its top-tier reports today and might show a slowdown in performance. If so, investors in the mainland might seek higher returns in bitcoin instead of leaving their funds in local stock markets and in the depreciating yuan.
The world’s second largest economy posted 6.7% growth for Q2, slightly higher than the estimated 6.6% figure. Industrial production expanded from 6.0% to 6.2% instead of falling to 5.9% while retail sales rose from 10.0% to 10.6%. Fixed asset investment is at 9.0% year-to-date, lower than the projected 9.4% figure and the previous 9.6% increase.
Charts from SimpleFX