Technical analysis of Bitcoin market - still in deep consolidation!

Technical analysis of Bitcoin market - still in deep consolidation!

Bitcoin price is still stuck in a consolidation pattern, but may soon break out strongly, either to the upside or the downside.

  Key points:

Bitcoin is setting higher lows and lower highs, forming a symmetrical triangle pattern on the 4-hour chart.

The price is still moving within a triangle pattern, but a breakout could occur as it approaches the top.

Whether it is an upward breakthrough or a downward breakthrough, it will form a long-term trend in Bitcoin prices.

Bitcoin price is still stuck in a consolidation pattern, but may soon break out strongly, either to the upside or the downside.

  Technical indicators

The 100-day simple moving average (SMA) is currently below the 200 SMA, indicating that the lowest level of resistance is on the downside. That is, a downside breakout is very likely. However, the distance between the two moving averages is close, so they may remain in a range and continue to consolidate.

The stochastic index is moving upwards, so the price of Bitcoin may move with it. In this case, an upward breakout is likely to occur, which will push the price of Bitcoin back to the highest point of the triangle, below $800. However, if the swing reaches the overbought zone and starts to move lower, sellers may take control of the price and drive a sell-off that will lead to the lowest point of the triangle, around $550.

  Market Dynamics

The US non-farm payrolls report on Friday did drive demand for the dollar higher as the actual data came in higher than expected. The economy added 287K jobs in June, higher than the expected 175K, while the previous month's data was 38K less than initially reported, and even fell by 11K. The unemployment rate rose from 4.7% to 4.9%, higher than the expected 4.8%, but this was also due to higher labor force participation. Average hourly earnings rose by 0.1%, less than the expected 0.2%, indicating that the job market is not strong enough, so there is no guarantee that the US Federal Open Market Committee will announce a rate hike this month.

Currently, the price of Bitcoin is still waiting for the market uncertainty to continue, so the specific direction is still waiting to see. This week, Chinese data will have a greater impact on market sentiment and the direction of Bitcoin, because the pessimistic data report will cause more funds to flow from the local securities market to the cryptocurrency market.