Bitcoin (BTC/USD) Price Technical Analysis for June 15, 2017

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Bitcoin recently broke below a rising wedge consolidation pattern on its 1-hour time frame and has recently completed a pullback. Price is now testing the breakout lows but technical indicators are giving mixed signals on whether the selloff could continue or not.

The 100 SMA is starting to cross below the longer-term 200 SMA to signal that the path of least resistance is to the downside. These moving averages also held as dynamic resistance levels in the pullback and could continue to keep gains in check.

However, stochastic seems to be pulling higher to reflect a return in buying pressure. If support around $2500-2550 holds, bitcoin could make another pullback to the $2800 area of interest or the broken wedge support.

RSI is still pointing down to indicate that there is some selling pressure left. However, the oscillator is nearing the oversold area to signal that bears could be exhausted pretty soon and let buyers take over. Zooming out to the 4-hour chart shows that bitcoin may be forming a rising channel pattern.

Bitcoin gains were recently dampened by a bearish forecast from Goldman Sachs chief technician Sheba Jafari.

“It’s on track to forming a bearish key day reversal if today’s (June 12) close settles below 2,749. It will also form a key week version if Friday’s close is below 2,475. Both daily/weekly oscillators are diverging negatively. All of this to say that the balance of signals are looking broadly heavy,” he wrote.

This comes after several clients requested Goldman Sachs to cover bitcoin in order to make up for hedge fund losses. The institution has put more of its attention and efforts into exploring blockchain technology in the past few years, becoming one of the first members of the R3 blockchain consortium, but ended its membership in October.

Meanwhile, the dollar gained ground on the relatively optimistic FOMC statement which confirmed that another rate hike is still in play before the end of the year. The Fed downgraded inflation forecasts for this year but upgraded growth and employment projections for this year until 2019.

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