Bitcoin Price Key Highlights
- Bitcoin price has been steadily climbing on its 1-hour chart, moving inside an ascending channel pattern.
- Price bounced off the top of the channel once more and is now making a move towards support.
- If this area holds as a floor once more, bitcoin price could make its way back up to the channel resistance.
Bitcoin price could be due for a bounce off the channel support, with technical indicators reflecting the presence of buying momentum.
Technical Indicators Signals
The 100 SMA just crossed above the 200 SMA to indicate that the path of least resistance is to the upside. In addition, these moving averages are in line with the channel support around $575-580, adding to its potential strength as a floor. A break below the 200 SMA, however, could be an early signal of a reversal from the uptrend.
Stochastic is on the move up, suggesting that buyers are still in control of price action. The oscillator seems to be stalling midway, though, and might head back to the oversold zone as sellers try to regain control. If stochastic continues its rise, bitcoin price could follow suit.
A bounce off the channel bottom could take it up to the channel resistance at $600 while a break lower could bring it down to the next support area around $560-570.
Market Events
The US dollar was able to advance across the board on Friday as traders reconciled that the US economy is still one of the more stable ones out there. UK Prime Minister Theresa May mentioned that Article 50 could be invoked by April next year, which would mean that the Brexit process could bring uncertainty back to the financial markets soon.
Also, downbeat data from other economies such as Canada and signs of a property sector slowdown in China brought a bit of risk aversion back to the table, weighing on riskier holdings such as bitcoin and favoring the safe-haven US dollar. Up ahead, expectations for the Jackson Hole Symposium could influence USD action against bitcoin price.
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