BTCUSD is still on its uptrend, moving inside an ascending channel on its 1-hour chart even with that sharp spike down late last week. Price tested the channel resistance and was rejected, putting it back on track towards testing the support around $575.
The 100 SMA just crossed above the longer-term 200 SMA to indicate that the path of least resistance is to the upside and that the channel support could keep losses in check. A break below this area, however, could be a signal that sellers are gaining control of price action.
RSI is moving lower so there may be a bit of selling pressure left but the oscillator is nearing the oversold area. Similarly stochastic is heading lower but is already in the oversold region so bearish momentum might fade and buyers could take over. A bounce off the channel support could take BTCUSD up to the channel resistance at $585-590.
Hawkish remarks from Fed officials and expectations of a Fed rate hike in September or December are keeping the dollar supported against its counterparts recently. Fed official Stanley Fischer also shared an upbeat outlook, setting the tone for the Jackson Hole Symposium later on this week and Fed head Yellen’s much-anticipated speech.
Apart from that, downbeat economic data and potential uncertainty springing from the Brexit process set to start in April next year have propped up the safe-haven dollar against bitcoin over the weekend. Expectations of additional stimulus from central banks due to these updates reminded traders that the US economy is faring much better than the rest.
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