Bitcoin (BTC/USD) Price Technical Analysis for June 1, 2018

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Bitcoin continues to hover at the bottom of its symmetrical triangle pattern while waiting for more bullish momentum. RSI has pulled up from oversold levels to signal a return in buying pressure while stochastic looks ready to turn higher as well.

However, the 100 SMA remains below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, a break below support is still a possibility and a bounce could likely find resistance at the top, which lines up with the 100 SMA dynamic inflection point.

In addition, the gap between the moving averages is widening to reflect stronger selling pressure. A break below support could lead to a drop of the same height as the formation, which spans $6,000 to $12,000. Similarly, a break past the resistance around $9,000 could lead to a rally of the same size.

Bitcoin had to contend with the lack of market catalysts over the past few weeks but appears to be drawing some support from risk aversion. Earlier on, political uncertainty in Italy lead to fears of an EU breakup that drove demand for bitcoin. Later on, trade war troubles stemming from higher US tariffs on steel and aluminum imports from Canada, Mexico, and the EU both weighed on the dollar and lifted bitcoin.

The US has the NFP report due before the end of the trading week and this could spur more BTCUSD volatility as it impacts Fed tightening expectations. Weak results could drive the dollar lower, particularly if the average hourly earnings figure shows no wage growth. On the other hand, strong data could revive rate hike hopes and boost the dollar higher versus bitcoin.

Apart from that, overall market sentiment could still be king as traders continue to keep tabs on the trade situation. Canada and Mexico are planning on imposing their own trade measures on US products while the EU has also threatened to impose tariffs in retaliation.

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