BTCUSD Price Key Highlights
- BTCUSD price has sold off after its previous bull run, allowing the much-needed correction to take place.
- Bulls might be ready to charge once more, now that a small reversal pattern can be seen on the 1-hour chart.
BTCUSD price is forming a double bottom formation on its short-term time frame, an indication that the correction might already be over and that the uptrend could resume.
Mixed Technical Signals
The 100 SMA is still above the 200 SMA for now, which means that the uptrend might still have a shot at resuming. However, the moving averages are edging closer together so a downward crossover might be possible. In that case, price could break below the bottoms at $360 and go for more declines.
In addition, stochastic is already indicating overbought conditions, a signal that buyers might be exhausted. If they do take a break and allow sellers to take over, further losses and a larger long-term correction might be in the cards.
Meanwhile, RSI is on the move up, indicating that bullish pressure is still present. This could give BTCUSD enough energy to break above the double bottom neckline close to the $400 psychological barrier and regain more ground, possibly until the next areas of interest at $420-440.
A strong return in bullish momentum could put BTCUSD price back on track to climbing to its previous highs near the $500 level, although it would take major market catalysts to sustain another rise to that area. For now, it appears that US dollar strength is weighing on BTCUSD price, thanks to an upbeat US jobs report released last week.
Intraday support level – $360
Intraday resistance level – $400
Technical indicators settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
Charts from BitStamp, courtesy of TradingView