BTCUSD Price Technical Analysis – Wait for a Pullback!

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BTCUSD Price Technical Analysis - Wait for a Pullback!

BTCUSD Price Technical Analysis - Wait for a Pullback!

BTCUSD has been trending higher following an upside break from a daily consolidation pattern. An ascending trend line can be drawn to connect the latest lows of price action on the 1-hour time frame.

BTCUSD is encountering resistance around $468 and might be due for some profit-taking. Stochastic is heading down from the overbought region to indicate a return in bearish pressure while RSI is also on the move lower.

However, the 100 SMA is still above the 200 SMA on the 1-hour chart so the path of least resistance is to the upside. The short-term moving average is in line with the trend line so this could act as strong support. If so, BTCUSD could resume its climb to the previous highs and beyond.

Keep in mind, however, that there are plenty of top-tier catalysts this week so BTCUSD could spike around. For today, the US durable goods orders report is due and strong rebounds are eyed, possibly providing support for the dollar enough to trigger a test of the trend line. Also lined up are the CB consumer confidence index and flash services PMI.

Later on, the FOMC statement is expected to spur a lot of action for the dollar, as the Fed might share its plans on when it could tighten again. No actual policy action is expected this week since US data hasn’t been particularly impressive but any indication that they could hike in June might still be bullish for the dollar.

As always, overall market sentiment could dictate where BTCUSD might go next, as bitcoin has drawn support from risk-taking activity.

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

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