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Bitcoin Price Key Highlights
- Bitcoin price is still stuck in consolidation, moving inside a symmetrical triangle visible on its 1-hour chart.
- Zooming further back shows that price previously formed a triangle formation then broke to the upside.
- However, technical indicators are hinting that bitcoin price is having a tough time repeating this bullish performance this time.
Bitcoin price is still moving inside a triangle consolidation pattern but seems to be having trouble pushing for another upside breakout.
Technical Indicators Signals
The 100 SMA is below the 200 SMA for now so the path of least resistance is to the downside. The moving averages appear to be oscillating, though, so range-bound conditions could stay in play before a more convincing crossover happens. An upside breakout from the triangle could take it back to the $800 highs while a breakdown coul push it back to the $750 area of interest.
Note that the lows of bitcoin price action are still above a longer-term ascending trend line, although the recent lower higs are reflecting an increase in selling pressure. Stochastic is indicating overbought conditions so a selloff might be due as soon as the oscillator heads south.
Meanwhile, RSI is still on the move up to show that there’s still some bullish momentum left, possibly enough for a bounce back to the triangle resistance at $780. Once the oscillator hits the overbought region to indicate an exhaustion in buying pressure, sellers could take advantage.
Market Events
Traders seem to be bracing themselves for the FOMC statement this week, as this could set the tone for dollar action against bitcoin price. An interest rate hike is in the cards so market watchers will be more interested to find out when the next tightening move could take place. Updated economic forecasts and the dot plot projection of interest rate hikes could be a major driving force in dollar movement against bitcoin for the week.
Apart from that, data from China, particularly its industrial production, fixed asset investment, and retail sales figures are likely to influence bitcoin demand. Strong data could dampen bitcoin price gains while weak figures could revive speculations of easing and yuan devaluation, encouraging Chinese traders to seek higher returns with bitcoin.
Charts from SimpleFX
