Bitcoin Price Key Highlights
- Bitcoin price is stuck in consolidation once more, following a strong upside breakout last week.
- Looking back at the previous breakouts shows that it occurs towards the end of the week and sustains its momentum until Monday.
- Upcoming event risks could keep this schedule in play, although the upcoming FOMC statement could make the situation more complex.
Bitcoin price could keep up its pattern of weekend breakouts unless the FOMC statement results to a strong surge in dollar demand.
Technical Indicators Signals
The 100 SMA is above the 200 SMA so the path of least resistance is to the upside, and the gap between the two moving averages is widening so bullish momentum is strengthening.
However, stochastic and RSI are both moving south from the overbought zones, indicating that profit-taking is happening. For now, the near-term support around $655 is keeping losses in check, and a break below this level could spur a larger correction.
As mentioned earlier, the breakouts occurred on May 26 (Thurs), June 3 (Fri), and June 11 (Sat) so there’s a good chance that another upside move could be seen around the weekend onto Monday, especially with the EU referendum scheduled a little over a week from today.