Bitcoin (BTC/USD) Price Technical Analysis for July 5, 2018

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Bitcoin’s rising wedge is still intact as price is back to testing the formation’s support. This lines up with the 100 SMA dynamic inflection point, adding to its strength as a floor.

The 100 SMA is also above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. A break below the wedge support could even find a floor at the 200 SMA dynamic inflection point next.

RSI looks ready to pull up after reaching oversold conditions. This also signals a likely pickup in bullish momentum. Similarly stochastic has climbed out of the oversold region to reflect a return in bullish pressure and a possible move back to the wedge resistance.

Bitcoin seems intent on sustaining its positive start for the month and quarter to chalk up one of its first positive weeks in a long time. After all, there have been no negative industry updates pertaining to regulation or hacks so far.

Besides, it’s typical for this kind of sentiment to prevail during the start of a new period as investors often treat it as a fresh start to reestablish their positions. It also helps that geopolitical risks are weighing on the dollar and that falling returns in traditional markets are pushing traders to seek higher returns elsewhere.

Up ahead, the dollar still has to contend with the release of the FOMC minutes and the NFP report for June. Upbeat jobs data supported by hawkish Fed rhetoric could strengthen demand for the US currency and cause BTC/USD to slide back down. On the other hand, downbeat NFP results and cautious remarks from majority of FOMC members could weigh on the dollar and allow BTC/USD to break higher.

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