Can Bitcoin bounce back towards $8200? Are technical indicators showing signs of a return in bullish momentum? Find out from the following 1 June BTCUSD Price Forecast.
1 June, OctaFX – Bitcoin has battled with its fair share of positive and negative commentary over the past few days, but it looks like the cryptocurrency could regain ground. A bit of month-end profit-taking may have also been factored in.
Cryptocurrencies recovered heavy early week trading-losses, as dip-buyers stepped in from oversold levels and improved trading sentiment returned to the alternative coin space.
Bitcoin, Ethereum, Ripple, and Litecoin started the trading week under heavy selling pressure, with Bitcoin falling below the $7,000 level while Ethereum briefly traded below $500. Buyers soon moved in from overstretched levels, with the broader cryptocurrency gradually recovering weekly losses.
Confidence had remained depressed in the digital currency market since the US Justice Department’s called for a probe into the speculated manipulation of Bitcoin prices last week.
1 June BTCUSD Price Technical Forecast
- The BTCUSD pair remains bearish while trading below the $7,500 level, further losses towards $7,000 and $6,400 seems possible.
- If the BTCUSD pair moves above the $7,500 level, price may correct back towards the $8,200 and $8,800 resistance levels.
What do technical indicators signal?
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This suggests that the selloff is still more likely to resume than to reverse.
However, the gap between the moving averages has narrowed enough to signal an imminent bullish crossover. Bitcoin price is also trading above these moving averages as an early signal of bullish momentum. From here, the 100 SMA and 200 SMA could hold as dynamic support.
RSI is pointing up without even hitting oversold levels, suggesting that buyers are eager to return. Stochastic is also turning higher so bitcoin price might follow suit if this keeps up. A break past the neckline around $7,600 could lead to a climb of the same height as the reversal pattern.
This article about 1 June BTCUSD Price Forecast was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.