Bitcoin (BTC) Price Watch: Upside Breakout, Quick Pullback?

Bitcoin Price Key Highlights

  • Bitcoin price was previously consolidating inside a rising wedge and has just surged past the top.
  • This signals that bulls are ready to charge and push price much higher from here.
  • The wedge spans around $1,000 in height so the resulting move could be of the same size.

Bitcoin price made a bullish breakout from its rising wedge pattern to signal that further gains are in the cards.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to carry on than to reverse. The gap between the two is also widening to signal stronger bullish momentum, and the 100 SMA is near the wedge support to add to its strength as a floor in another dip.

However, RSI is just turning after reaching overbought levels, which suggests a pickup in selling pressure. Stochastic still seems to have some room to climb so buyers could stay in control. A brief return in bearish energy could lead to a pullback to the broken wedge top around $6,800 before more buyers join in.

Note that the chart pattern spans $5,800 to around $6,800 so the resulting rally could be roughly the same height as well, taking bitcoin price to $7,800 next.

BTC/USD Chart from TradingView

Market Factors

A pickup in risk-taking being pinned on the US-Mexico trade deal could be one of the factors propping bitcoin price up. Traders seem to have renewed their appetite for higher-yielding and riskier assets like stocks, commodities, and cryptocurrencies as a result. On the flip side, the dollar is also lower as traders booked profits off their safe-haven positions.

Apart from that, new data from the CFTC revealed a decline in bearish bitcoin bets, leading traders to renew expectations for a strong rebound until the end of the year. Traders are also awaiting the SEC decision on a number of bitcoin ETF applications.

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