BTCUSD Price Key Highlights
- BTCUSD price broke below the symmetrical triangle consolidation pattern shown yesterday, indicating that further losses are in the cards.
- Dollar strength has been the main story in the financial markets these days, forcing bitcoin to return its recent wins to the US currency.
BTCUSD price could continue to cave to dollar strength, thanks to upbeat US jobs data supporting an interest rate hike from the central bank before the end of the year.
Headed Back to $300?
With that, BTCUSD price has been unable to sustain its previous rally, possibly setting its sights back on the area of interest at the $300 area. The 100 SMA is below the 200 SMA, which means that the downward crossover earlier was a good indication of where the breakout direction would be.
Stochastic and RSI are both heading down, reflecting the impact of bearish pressure on price action. The oscillators are nearing the oversold zones, which might mean that the selloff could pause, although they haven’t turned higher to indicate a return in buying momentum just yet.
A bounce off the triangle lows could be seen, potentially taking BTCUSD price back up for a retest of the broken consolidation support around $370. If this holds as resistance, bitcoin could aim for the latest lows then go on to create new ones.
Traders could continue to pay close attention to US data this week, particularly the retail sales report due on Friday, as these could provide additional evidence that the Fed could afford to tighten, thereby driving the dollar higher against bitcoin once more.
Intraday support level – $350
Intraday resistance level – $370
Technical Indicators Settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
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