BTCUSD is moving inside a symmetrical triangle pattern on its 1-hour time frame and has just bounced off the bottom. It could make another test of resistance and perhaps go for an upside break if dollar weakness stays in play.
BTCUSD is gearing up for a test of the resistance just below $372 and the 100 SMA. This short-term moving average is still below the longer-term 200 SMA, which confirms that the path of least resistance is to the downside.
In addition, stochastic is already approaching the overbought region, indicating a possible return in selling pressure. Once the oscillator turns from the overbought level at 80.0, bitcoin price might resume its drop.
However, RSI is on the move up. This signals that buyers could still be in control of price action, potentially leading to more gains for bitcoin. With that, an upside break past $372 could be enough to show that an uptrend is underway.
Updates on the OPEC meeting for this month could continue to impact overall market sentiment and thereby bitcoin price action, as BTCUSD tends to gain ground on risk-on days and lose traction on risk-off days.
So far, bitcoin price gains can be attributed to dollar weakness, after Fed officials have recently downplayed the possibility of a March rate hike. In his testimony yesterday, Fed official Dudley said that financial conditions are significantly tighter since their December liftoff, which suggests that they might not be eager to make additional tightening moves soon.
Data from the US economy has also been unimpressive, as the ISM surveys have shown weaker than expected manufacturing and non-manufacturing PMI readings.On the flip side, the ADP report showed a slightly stronger than expected reading so there might still be a chance of an upside NFP surprise and strong dollar gains.
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