Bitcoin Price Key Highlights
- Instead of making a pullback from its recent rallies, bitcoin price went on to form more bullish signals, indicating that the climb isn’t about to stop anytime soon.
- Bitcoin price recently broke above the neckline of a complex double bottom formation visible on the daily time frame.
Bitcoin could aim for the $500-550 levels next, which might hold as psychological resistance areas and spur profit-taking activity by the end of the week.
US Data Event Risks
While bitcoin price has been supported by strong bullish pressure, the upcoming top-tier data releases from the US economy could bring additional volatility. The US is set to print its October NFP report on Friday, with a larger pickup in hiring expected. Better than expected results could revive Fed rate hike hopes and lead to a surge in the US dollar.
In terms of technical indicators, both stochastic and RSI have already been indicating overbought conditions for quite some time. This suggests that a correction has been long overdue and that the nearby resistance points might contain a lot of sell limit orders.
The moving averages haven’t signaled any clear direction change yet, as they have yet to incorporate the recent bull run. An upward crossover by the 100 SMA could show that the rally is likely to be sustained. On the other hand, a large pullback could draw support at the double bottom neckline around $375.
Intraday support level – $400
Intraday resistance level – $500
Charts from TradingView