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Bitcoin Price Key Highlights
- Bitcoin price has been making one upside breakout after another, indicating the presence of strong bullish momentum.
- A steeper rising trend line can be drawn to connect the latest lows of price action on the 1-hour time frame.
- Price could be in for a shallow pullback to this rising trend line or a larger correction to the nearby area of interest.
Bitcoin price is enjoying stronger bullish pressure that’s pushing it up on a much steeper climb lately.
Technical Indicators Signals
The 100 SMA is safely above the longer-term 200 SMA so the path of least resistance is still to the upside, confirming that the uptrend is likely to carry on. The gap between the moving averages is widening, which means that bullish momentum is strengthening.
A pullback to the trend line around $685 could be in the cards, as buyers are likely waiting with more buy orders in that area. A larger correction could last to the 100 SMA dynamic support at $675, which lines up with a broken resistance zone.
The line in the sand for this uptrend would be the 200 SMA dynamic support, as a break below this area could set off a downtrend. Stochastic hasn’t quite reached the overbought zone just yet but is already crossing lower to show a potential return in bearish pressure.
Market Events
Positive updates in the bitcoin industry continue to lift bitcoin price and keep it on track for more gains. However, profit-taking at the end of the week and month could lead to major corrections from the ongoing trend.
Apart from that, the release of the advanced Q3 GDP reading from the US could have a significant impact on dollar action across the board, which might then affect its movement against bitcoin price. Analysts are expecting to see a 2.5% expansion for the period, faster than the earlier 1.4% growth and likely enough to keep Fed rate hike expectations in play.
Stronger than expected results could allow the dollar to advance against bitcoin price and possibly lead to a break of the short-term trend line while downbeat data could lead to dollar losses and a potential break past $700 for BTCUSD.
Charts from SimpleFX
