Bitcoin Price Key Highlights
- Bitcoin price is slowly starting to trend higher on the short-term time frames once more, creating an ascending channel formation on its 1-hour chart.
- Price just came off a test of the channel resistance and is setting its sights back on support.
- Technical indicators are suggesting that the channel support could hold and allow bitcoin price to resume its climb.
Bitcoin price is starting an uptrend on its 1-hour time frame and bulls could keep this rally going after a test of support.
Technical Indicators Signals
The 100 SMA just crossed above the longer-term 200 SMA, signaling that the path of least resistance is still to the upside. In addition, these moving averages are close to the channel support at $600-605, adding to its strength as a floor.
Stochastic is on the move down for now so bitcoin price could follow suit. The oscillator is already nearing the oversold area, though, so a turnaround could follow and allow bulls to take over once selling pressure is exhausted.
However, if bearish momentum picks up, bitcoin price could break below the channel support and head to the next lows at $595 or lower. On the other hand, a strong surge in buying pressure could spur a break past the channel resistance around $607.50.
Volatility seems to have subsided in the financial markets over the past few hours as the main event risks (central bank decisions, US presidential debate, and OPEC gathering) have passed. This leaves a data-light week with barely any major catalysts, although the upcoming US durable goods orders release and speeches by Fed Chairperson Yellen and FOMC voting member Bullard could still spur dollar action against bitcoin price.
Hawkish remarks from both Fed officials could allow the dollar to advance more strongly across the board, reinforcing expectations that the US central bank could move to tighten in any of their upcoming FOMC meetings.
It’s also worth noting that the end of the month and quarter is approaching at the end of this week, opening up a strong possibility for reversals on profit-taking.
Charts from SimpleFX