Bitcoin Price Key Highlights
- Bitcoin price is still moving in tight consolidation as traders might be holding out for stronger directional clues.
- Price is trading inside a narrow ascending channel visible on its 1-hour chart.
- Bitcoin is going for a test of the channel support and might be in for a climb back to the top, unless a breakout happens.
Bitcoin price is treading sideways in a narrow and shallow ascending channel visible on the short-term charts.
Technical Indicators Signals
The 100 SMA is moving close to the 200 SMA and could be in for a downward crossover to show that sellers are taking control. If so, the path of least resistance would be to the downside, which would make a breakdown more likely to happen than an upside breakout. The moving averages are also near the channel resistance, adding to its strength as a potential short-term ceiling.
Stochastic is making an upward crossover and appears ready to head back north from its trip to the oversold region. This means that sellers are feeling exhausted and might be willing to let buyers take over. RSI is treading sideways, barely providing directional clues at the moment.
A break above the channel resistance could allow bitcoin price to resume its longer-term climb, as it remains inside a larger ascending channel seen on the daily and 4-hour charts. On the other hand, a move below the small channel support could be an early signal that bearish momentum is taking hold.
Market Events
China reported a weaker than expected trade surplus of 298 billion CNY versus the projected 307 billion CNY figure and the earlier 327 billion CNY reading. This suggests that trade activity is slowing, possibly convincing the Chinese government to be more aggressive in its yuan devaluation efforts.
If so, this could drive more Chinese investors towards bitcoin, which offers a way for them to hedge against yuan-denominated losses. This also allows them to take advantage of higher returns in other markets while authorities attempt to restrict offshore investments.
Charts from SimpleFX