BTCUSD was previously trading inside a symmetrical triangle consolidation pattern before bulls took over and pushed for an upside break. Buying pressure still seems to be in play as a bullish flag can be seen after the breakout. A candle closing above the $685 area could be enough to confirm that buyers are still in control, likely pushing price back to the highs closer to $775. On the other hand, a return in bearish momentum could lead to a pullback to the broken triangle resistance at $665.
RSI is starting to turn lower, indicating that buyers are feeling exhausted. Stochastic is also already in the overbought region, so sellers could take over. On the other hand, the 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. These moving averages could hold as dynamic support levels in the event of a pullback.
Data from the US economy came in mostly stronger than expected last Friday so there’s still some demand for the Greenback. However, tensions in Europe came into play and the uncertainty encouraged traders to seek returns from alternative assets such as bitcoin.
Up ahead, there are plenty of top-tier releases for the week that might influence market sentiment and BTCUSD action. UK CPI and jobs data are lined up ahead of the ECB interest rate decision and the RBNZ’s update on the economy. Additional stimulus from the ECB could discourage traders from putting money in traditional fiat currencies while dovish remarks from the RBNZ could spur bitcoin rallies as well.
Data from China was also stronger than expected last week so there weren’t any signs of market panic in the world’s second largest economy unlike the behavior seen during the prior release of these top-tier reports.
