BTCCNY has formed lower highs and found support at 4330.00, creating a descending triangle chart pattern on its 1-hour chart. Price is currently testing the triangle resistance, still deciding whether to make a bounce or a break.
The 100 SMA is below the 200 SMA so the path of least resistance is to the downside. In addition, these moving averages line up with the top of the triangle so they could add to its strength as resistance.
RSI is on middle ground, barely offering any strong directional clues at the moment. Stochastic seems to be on the move up to show that buyers are taking control of price action but BTCCNY will need to make a strong close past 4380.00 before confirming the upside breakout.
If that happens, BTCCNY could aim for the triangle top at 4460.00 next. On the other hand, a downside break of support could take it down to 4200.00 next. Of course this depends on market catalysts, and it seems that risk appetite is keeping bitcoin supported for now.
The FOMC has assessed that downside risks to growth have diminished, providing assurance for other major economies as well. This has led investors in China to keep their money in the stock markets and refrain from panicking then flocking back to bitcoin.
However, a couple of risks have emerged in Europe, possibly keeping the cryptocurrency well-bid again. Spain will be holding a vote of confidence since it failed to produce a majority government in the latest elections while signs of more banking sector stress are materializing in Italy.
European banking stress test results are up for release today and downbeat data could bring risk aversion back to the markets and lead to bitcoin buying. Also up for release today is the US advanced GDP reading for Q2.