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Bitcoin Price Technical Analysis
- Bitcoin price recently made an upside breakout from a near-term resistance around $660.
- Price has found resistance at the $670 area and has since pulled back to the broken resistance, which appears to have held as support.
- This signals that bitcoin bulls could be ready to charge once more, although technical indicators are suggesting otherwise.
Bitcoin price could be ready to resume its climb now that this area of interest held as support.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA so the path of least resistance is to the downside. However, the gap between the moving averages is narrowing so an upward crossover might be in the cards. A larger pullback below the area of interest could also draw support from these dynamic inflection points at $655 and $650.
Stochastic is on middle ground on its way down, indicating that sellers might still be in control of bitcoin price action. If so, price could be in for declines past those support areas and onto the longer-term support closer to $600. Zooming out to longer-term time frames shows that bitcoin price is still consolidating so it might be best to wait for an actual breakout candle.
Market Events
The market attention is shifting to a couple of main concerns in the major economies these days, mainly the economic performance of China and the banking crisis in the euro zone. China is set to print its trade balance today, ahead of the GDP, industrial production, fixed asset investment, and retail sales reports due on Friday.
Downbeat results could encourage more Chinese investors to move money out of their local markets onto alternative assets like bitcoin. This behavior was seen in the end of May when the influx of funds to virtual currency markets was partly responsible for the surge in bitcoin price then.
Also, the Italian banking crisis has been worsening, sparking contagion fears and adding to the list of uncertainties in the region. Brexit issues seem to be taking the back seat for now since political uncertainty has subsided in the United Kingdom.
Charts from SimpleFX
