After a strong bullish performance at the start of this week’s trading, bitcoin price has spent the past couple of days in consolidation. BTCUSD has been trading between support at $10,871.00 and resistance at $11,256.07. As of this writing, the cryptocurrency is down 0.66% from its opening price. What could affect it in today’s trading?
Later today, at 1:30 pm GMT, the US will release its GDP report for Q2 2020. It is widely expected that the data would show a 34.5% contraction for the quarter. A disappointing reading could be bullish for bitcoin price because it may weaken the US dollar. On the other hand, a better-than-expected reading could drive BTCUSD lower.
On the 1-hour chart, it can be seen that bitcoin price is testing support at its previous trendline from connecting the highs of July 27 and July 28. Reversal candlesticks around $11,030.35 could mean that bitcoin price may soon resume its uptrend. Should this be the case, BTCUSD may soon rally to $12,325.00 where it peaked on August 6, 2019.
On the other hand, a strong bearish close below yesterday’s low at $10,855.81 would effectively break support. It could mean that there could be more downside potential for BTCUSD. It may soon then fall to $10,600.00 where it could test the 100 SMA for support.