Bitcoin Price Key Highlights
- Bitcoin price appears to be finding support at the bottom of its symmetrical triangle.
- If it keeps holding as a floor, price could head back to the resistance around $9,000.
- Oscillators are suggesting that a return in bullish momentum is in order.
Bitcoin price is finding support at the bottom of its symmetrical triangle while oscillators indicate oversold conditions.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside, which suggests that a break below support is still possible.
Price is also trading below the 100 SMA so this moving average could hold as near-term resistance in a bigger bounce. The gap between the moving averages is sufficiently wide so there is no imminent threat of a bullish crossover.
However, RSI is pulling up from oversold levels to signal that buyers are getting back on their feet. Similarly stochastic is moving out of the oversold region to signal a return in buying pressure. A bullish divergence can also be observed for this oscillator as stochastic made lower lows since April while bitcoin price made higher lows.
Market Factors
Even though cryptocurrencies have been hit by risk-off flows recently, it looks like fears of rising anti-EU sentiment are driving up demand for bitcoin again. This has been particularly evident during previous referendums wherein euro zone nations threatened to leave the bloc.
Italy is said to be headed for another round of polls as the coalition government leaders are unable to draw enough support. Some say that the elections could be a proxy for a referendum vote, possibly even spurring anti-EU sentiment in other countries like Spain and Portugal.
The polls aren’t likely to happen until late July or even September, which means continued political uncertainty in the region and a chance for anti-EU parties to gain more traction.