BTCUSD Price Technical Analysis for 05/30/2016 – Aiming for Next Resistance Levels

BTCUSD Price Key Highlights

  • BTCUSD price made a strong breakout from the $500 yearly highs, indicating its potential to keep the bullish run going.
  • Zooming out to the longer-term weekly chart shows the next possible resistance levels.
  • However, technical indicators are hinting that buyers are feeling exhausted and that a correction might be due.

BTCUSD price made a strong upside breakout on Friday and could be in for a larger climb after a bit of correction.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA on the weekly chart so the path of least resistance is still to the upside. However, the gap between the moving averages is narrowing so a downward crossover might take place soon. If so, sellers could jump in and trigger a pullback from the recent surge.

If that happens, BTCUSD price could draw support from the $500 psychological level or the dynamic support at the moving averages around $400. Stochastic is already indicating overbought conditions, which means that buyers are feeling exhausted and might let sellers take over from here.

RSI is still on the move up so there’s buying pressure left. In that case, BTCUSD could climb to the next ceiling around $650, which held in mid-2014. Continued bullish pressure could push

Read more ... source: NewsBTC USA