Bitcoin Price Key Highlights
- Bitcoin price is still trending higher, moving inside an ascending channel pattern on its 1-hour chart.
- Price is cruising around the mid-channel area of interest, as buyers and sellers are likely waiting for more directional market clues.
- Technical indicators seem to be suggesting that a reversal is imminent, though.
Bitcoin price is sustaining its climb but there are technical signals hinting at a possible selloff.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. Also, the gap between the two moving averages is widening, reflecting stronger selling momentum. The 200 SMA coincides with the top of the rising channel, adding to its strength as a ceiling.
Stochastic is pointing down to show that sellers could be in control of bitcoin price action. Should this continue, price could attempt to break below the 100 SMA and channel support at $604.
This consolidation could carry on until early next week as traders might want to wait for the actual FOMC statement before deciding their dollar bias. An upside break from the channel resistance could lead to a sharper climb to the longer-term highs.
Market Events
Economic data from the US was mostly weaker than expected yesterday, reflecting slower consumer spending and inflationary pressures. This could be enough reason for the Fed to maintain a cautious stance and refrain from hiking interest rates too early.
CPI and consumer sentiment data are lined up for today and another round of downbeat results could reinforce a potentially neutral bias for the Fed. Overall inflation could be bleak since import prices and producer prices were downbeat. Meanwhile, lower consumer confidence could weigh on spending down the line. If so, the dollar could retreat across the board and allow bitcoin price to take advantage.
On the other hand, impressive readings could support hawkish views, especially since some members have shown a slight shift to a more upbeat bias. Keeping the door open for a December hike could still keep the dollar supported against bitcoin price.
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