Bitcoin (BTC/USD) Price Technical Analysis for June 12, 2017

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Bitcoin continues to climb and is bouncing off support at the new ascending wedge materializing on the 4-hour time frame. If this keeps up, it could test the resistance around the $3000 major psychological level to establish new all-time highs or even break higher.

Note that the chart formation spans $2000-2700 so the resulting rally could be of the same size. Similarly, a break below support around $2800 could lead to a drop of the same height.

The 100 SMA is safely above the longer-term 200 SMA on this time frame so the path of least resistance is to the upside. This means that a bounce off support is more likely to happen than a breakdown. Still, a move below the wedge bottom could find support at the 100 SMA dynamic support around $2500.

Stochastic appears to be turning down from the overbought zone to signal a pickup in selling momentum. RSI is treading sideways to suggest further consolidation but it also seems to be on its way down so bitcoin might follow suit.

Dollar bulls seem to be reestablishing their positions now that there have been no bombshells during Comey’s testimony. In fact, some political analysts even pointed out that his responses to the Q&A have actually reinforced the idea that Trump is not being investigated in relation to the leak of highly-classified information to Russian officials.

With that, the focus could shift back to US fundamentals, which actually haven’t been so good. The latest NFP report indicated a weaker than expected increase in hiring, which could be reflective of a slowdown in the jobs market. Traders appear to be pricing in a rate hike this June, which could yield some gains for the dollar versus bitcoin, but policymakers might indicate that they’re inclined to pause tightening from here.

If so, investors could put more funds back in bitcoin to take advantage of its strong bullish run and higher returns compared to other assets. The cryptocurrency already seems to have shrugged off the weight from Mark Cuban’s recent tweet on how bitcoin is in a bubble.

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