Bitcoin Price Key Highlights
- Bitcoin price tested the channel support on the 4-hour time frame, after breaking below the shorter-term channel as mentioned in the previous update.
- The current support area appears to be keeping losses in check, as it also coincides with the dynamic support at the moving averages.
- If buyers are able to sustain the upward momentum, bitcoin price could head back up to the channel resistance.
Bitcoin price is still in an uptrend, as the ascending channel support on the 4-hour time frame is holding.
Technical Indicators Signals
The 100 SMA is above the 200 SMA so the path of least resistance is still to the upside. This means that bitcoin price could be able to climb back to the top of the range near the $430 level or much higher. However, if a downward crossover is seen, sellers may take over and push for a break below the channel support at $415.
RSI is still on middle ground, barely providing strong directional clues for now. Stochastic is heading north so price could follow suit. This indicates that bullish momentum is present, but it might fade once the oscillator reaches the overbought levels.
Last week was marked by a lot of consolidation for bitcoin, although some volatility was seen during the latter half. Risk sentiment played a role in price action, as demand for the dollar strengthened on increased financial uncertainty.
However, bitcoin price could still be able to carry on with its climb, especially since futures and commodities appear to be indicating a return in risk appetite early on this week. Data from China came in mixed, with the headline CPI failing to budge from 2.3% but the PPI showed a significant improvement from -4.9% to -4.3%.
Later on, US retail sales and CPI readings could add to dollar volatility once more. Other factors that could affect market sentiment and bitcoin price action for the rest of the week include the central bank statements from Canada and the UK, as well as the UK CPI and Australian jobs release. Updates on oil production meetings could count as well.
Charts from Bitstamp, courtesy of TradingView
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.