Bitcoin Price Key Highlights
- Bitcoin price recently made an upside breakout from a short-term consolidation pattern, signaling that bulls are putting up a fight.
- Price is back in consolidation for now, possibly waiting for more catalysts to fuel it higher.
- Technical indicators are suggesting that further gains are in the cards.
Bitcoin price is still pushing higher, but these gains could hinge on this week’s top-tier market catalysts.
The 100 SMA seems to be attempting an upward crossover from the longer-term 200 SMA, signaling that the path of least resistance is to the upside again. Stochastic is also turning higher even on its way down, which suggests that bulls are trying to regain control of bitcoin price action.
If so, price could continue to move higher, possibly setting its sights on the next ceiling around the $625-630 area, which held as resistance earlier this month. Continued gains past that point could put bitcoin price on track towards the $660 area.
On the other hand, a return in bearish pressure could trigger a quick pullback to the broken resistance at $610 or lower until the $600 psychological support. A sharp break below this area could signal that sellers are likely to stay on top of the game for much longer.
The direction of bitcoin price could depend on the outcome of the FOMC statement later this week, as the central bank could adjust monetary policy or share what they have in mind for the rest of the year. Any hawkish moves could spur strong gains for the dollar and spark a drop for BTCUSD.
On the other hand, cautious remarks could undermine rate hike hopes and lead traders to unwind their long dollar positions even more. This could be a very bullish scenario for bitcoin price, especially if the Fed focuses on the lack of momentum in employment and inflation.
Still, be on the lookout for additional volatility right around the time of the announcement and press conference since market participants are likely to be very sensitive to any change in tone or strong hints.
Charts from SimpleFX