BTCUSD made an upside break from a symmetrical triangle resistance on the 4-hour time frame but has pulled back to that area. Using the Fib tool on the breakout move reveals that this lines up with the 50% level and applying the extension tool shows the next potential resistance areas.
Stochastic is on the move up so further gains are possible. RSI is also pointing higher so price might follow suit. Also, the 100 SMA crossed above the 200 SMA to confirm that BTCUSD has enough bullish momentum going on.
With that, price could move back to its previous highs around $445 or until the next psychological resistance at $450. The 76.4% Fib is located at $465, which also coincides with a longer-term ceiling.
Data from the US economy has been strong, which explains the current consolidation in BTCUSD. Risk appetite has also supported the cryptocurrency, mostly since oil prices staged a strong rebound recently.
Reports that OPEC and non-OPEC leaders are set to meet again to discuss a potential cap in production next month are keeping commodity prices and risk appetite afloat. However, if this deal falls short, BTCUSD could be in for yet another slide.
On the other hand, more signs of an accord could keep risk-taking in play, likely boosting BTCUSD all the way up to the previous year highs at $500 in the longer run. Other factors that could impact risk sentiment are the current concerns about a Brexit, which would expose the UK and the global economy to more economic and financial uncertainty.
The referendum is set for June and an increasing number of supporters could keep risk aversion back in the markets, dampening demand for riskier assets like bitcoin.
To contact the reporter of the story: Samuel Rae at email@example.com