BTCUSD keeps trending higher and has reached new record highs around the $1500 levels. Price is still moving above its short-term rising trend line on the 1-hour time frame after recently breaking past its ascending channel resistance on the daily chart.
BTCUSD hit a record high at $1520 and is pulling back on profit-taking. This could be an opportune time to wait for a pullback or a chance to buy on dips. Applying the Fib tool on the swing high and low on this time frame shows potential entry levels.
In particular, the 38.2% retracement level lines up with the rising trend line support at $1484.63. A larger pullback could last until the 50% level at $1473.56 or the 61.8% level at $1462.50.
The 100 SMA is above the longer-term 200 SMA on this chart so the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. It’s also worth noting that price is increasing its gap from the moving averages, which is also indicative of stronger bullish momentum.
However, stochastic is reflecting a bit of bearish divergence with the falling highs while price has exhibited higher highs. This oscillator is turning lower from the overbought region to show a potential return in bearish pressure. RSI is also heading south so BTCUSD might follow suit.
A longer-term pullback from this rally that went on since April could be long overdue. However, market catalysts continue to suggest further upside for BTCUSD. To be specific, headlines confirming that the rise in bitcoin trading volumes is coming mostly from Japan has allow BTCUSD to push for more gains.
Analysts reported that 50% of bitcoin activity these days has come from Japanese exchanges, leading some to speculate that the country might overtake China in terms of market share. After all, the latter is still experiencing a slowdown in trading activity due to the government’s crackdown and the changes being implemented by bitcoin platforms to comply with investigations.
Even so, the dollar could be poised to enjoy more gains as the leading jobs indicators suggested a potential upside surprise in NFP that might continue to stoke rate hike expectations. These have been revived as the FOMC retained their confident outlook and brushed off the slowdown in Q1, leading many to speculate that two more rate hikes are on the table.