BTCUSD price has been forming higher lows and lower highs, creating a symmetrical triangle pattern on its 1-hour time frame. Price just broke below the triangle support, indicating that bearish momentum is taking hold.
This means that BTCUSD could be in for further losses, possibly until the triangle bottoms around $550. There are also areas of interest around $580 and $600, at which some profit-taking might happen.
Stochastic is on the move down so price could follow suit. Similarly RSI is also heading south and indicating that sellers are in control of BTCUSD at the momentum. However, once both oscillators reach the oversold areas, buying pressure might have a chance to return. Depending on how strong bullish momentum goes, a pullback to the bottom of the triangle or another move to the top could be seen.
The moving averages appear to be making an upward crossover, also suggesting that buying pressure could still resume. If this crossover is completed, more buyers could join the fold and push for another bitcoin rally. Of course this depends on how market events turn out.
Support for the US dollar has been extra strong these days, as it appears to be the safe-haven of choice after the Brexit. After all, the Fed isn’t exactly mulling additional stimulus or considering rate cuts, although it might refrain from tightening anytime soon. Apart from that, the final GDP reading for Q1 saw an upgrade from 0.8% to 1.1% versus the consensus at 1.0%. Stronger export activity was the main cause for the upgrade.
Core PCE price index, along with personal income and spending data, are up for release from the US economy today. Another batch of strong readings could mean more rallies for the dollar against bitcoin. Meanwhile, signs of a rebound in equity markets could draw investors away from their BTCUSD positions and back to stock trading.