BTCUSD Price Key Highlights
- BTCUSD price just made a strong upside breakout from a consolidation pattern before proceeding to a sustained rally as predicted in a previous article.
- Price is now stalling at an area of interest, which served as support in the past and has held as resistance since the middle of this month.
BTCUSD price could be in for a selloff from here since technical indicators are suggesting that the rally is already overdone.
Technical Indicators Signals
Stochastic is already in the overbought area and is turning lower, indicating a return in bearish pressure. RSI is also indicating overbought conditions and turning south, which means that BTCUSD price could do so as well.
The 100 SMA just crossed below the longer-term 200 SMA on the 4-hour time frame so the path of least resistance could be to the downside. Besides, BTCUSD price is just coming off a strong downtrend following the sudden rally late last month.
BTCUSD price formed a long-wicked candle right on the area of interest, reflecting profit-taking activity in the area. If sellers stay in control, price could fall back to the previous support around $315.
The average directional index is still treading sideways below the 50.0 level which suggests that ranging market conditions could persist. A move above 50.0 could indicate a return to a trending environment.
If buyers stay on top of their game, BTCUSD price could have a shot at breaking above the $350 resistance level, potentially taking it to the next area of interest around $380-400. Stronger buying momentum could spur a climb all the way up to the $480-500 levels, although it’s hard to imagine if there’d be a catalyst on deck to spur a prolonged rise.
Intraday support level – $315
Intraday resistance level – $350
Technical Indicators Settings:
- 100 and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
- ADX (14)
Charts from Bitstamp, courtesy of TradingView