BTCUSD Price Technical Analysis – Watch Out for an FOMC Breakout!

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BTCUSD Price Technical Analysis - Watch Out for an FOMC Breakout!

BTCUSD Price Key Highlights

  • BTCUSD price has formed higher lows and found resistance at $465, creating an ascending triangle pattern on its 1-hour time frame.
  • Price is approaching the peak of the triangle formation which means that a breakout is bound to take place within the day.

BTCUSD price could resume its trending movement once it is able to pick a clear direction based on this week’s catalysts.

Up or Down?

Technical indicators are giving mixed signals, with the moving averages hinting at an upside break and the oscillators suggesting potential losses. The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In that case, a long green candle closing above $465 could take BTCUSD price to its yearly highs near $500.

In addition, the pair is coming off a steady uptrend, which suggests that buyers may just be taking a break for now and gearing up for more gains. However, stochastic is pointing down so sellers may be gaining the upper hand. RSI is also headed south, which means that BTCUSD price might follow suit.

If so, a long red candle closing below the triangle support at $450 could take BTCUSD price down to the triangle lows at $400 or much lower. The average directional index is pointing down but is still above the 50.0 level so trending market conditions could stay in play.

Intraday support level – $450

Intraday resistance level – $465

Charts from Bitstamp, courtesy of TradingView