BTCUSD recently consolidated in a short-term symmetrical triangle formation and has broken higher, indicating that bulls are regaining control of price action. This could be enough to take bitcoin back up to the record highs around 1300.00.
The 100 SMA has crossed above the longer-term 200 SMA to signal that the path of least resistance is to the upside, confirming that bullish pressure could stay in play. Also, the 100 SMA coincides with the bottom of the triangle, adding to its strength as a floor in the event of a pullback. The gap between the moving averages is sufficiently wide so there might not be any new downward crossover just yet.
Stochastic is moving up but is already in the overbought zone, which suggests that bulls are getting tired and willing to let sellers take over, especially once the oscillator turns lower. RSI is on the move up but is already starting to point down, possibly a sign that sellers are eager to get back in the game.
BTCUSD has enjoyed some support from geopolitical risks in the past few days as tensions in several parts of the world drove investors away from traditional financial assets onto higher returns from alternative ones like bitcoin. Also, upcoming elections in France and the surprise snap elections called by UK Prime Minister May could also mean more uncertainty in the European region.
On the 1-hour chart, a bit of a pullback seems to be happening, possibly taking BTCUSD for a retest of the broken triangle resistance around 1180-1200. A break below this area could draw some bearish pressure and possibly trigger a larger correction to the 200 SMA dynamic support. If geopolitical risks continue to stay in play, bitcoin could renew its climb and perhaps even take out its record highs as uncertainty picks up.