BTCUSD Price Technical Analysis – Finally Some Action!

0
58
BTCUSD Price Technical Analysis - Finally Some Action!

BTCUSD Price Technical Analysis - Finally Some Action!

After days of consolidation, BTCUSD finally showed some action in breaking higher. Price had been stalling around $410 or the 50% Fib on the latest swing high and low on the 1-hour chart but it was able to bust higher after the ECB statement.

The European Central Bank announced several rate cuts and an expansion of their stimulus program from monthly asset purchases of 60 billion EUR to 80 billion EUR. This allowed investors to anticipate cheaper credit, which would be advantageous to businesses and consumers.

With that, BTCUSD pushed for more gains as the higher-yielding bitcoin typically benefits from risk-taking activity. Right now, price is nearing the top of the descending channel at the 61.8% Fib, which might still keep further gains in check.

Price has busted past the 200 SMA to indicate a pickup in bullish momentum. In addition, the 100 SMA appears to be crossing above the 200 SMA to confirm that more rallies could take place. A break past the channel resistance could show that an uptrend is about to happen, taking BTCUSD to the next resistance at $450 then to $465.

However, stochastic is already indicating overbought conditions so buyers might need to take a break and let sellers take over. For now, this oscillator has yet to cross below the 80.00 level to indicate a return in bearish pressure. Similarly, RSI is making its way up to the overbought region.

There are no other major event risks lined up in the financial markets for today, which suggests that profit-taking might take place ahead of the weekend and allow BTCUSD to retreat. If so, BTCUSD could head back to the channel support or previous lows at $380. Still, if risk appetite stays strong, an upside breakout could be possible.

 

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

For free forex trade signals, sign up on Trade24 here
SHARE
Previous articleEURAUD Forex Forecast – Major Correction Underway
Next articleEURGBP: More Weakness May Follow
Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.