Bitcoin Price Key Highlights Bitcoin price has been forming lower highs and higher lows on the daily time frame, creating a symmetrical triangle pattern.
Price broke out of a shorter-term triangle pattern but is having difficulty breaking past the daily triangle resistance.
Bitcoin price is still hovering around the top of the formation but technical indicators are suggesting a possible drop.
Bitcoin price is trying to make an upside breakout from the symmetrical triangle but another test of support might take place.
Technical Indicators Signals
On the daily time frame, the 100 SMA is safely above the 200 SMA, which suggests that the path of least resistance is to the upside. In addition, the moving averages are edging farther apart so bullish momentum is getting stronger.
An upside break from the resistance could lead to a move to the triangle highs at $500 and beyond. The chart pattern is around $200 tall so the resulting rally could last by the same amount.
However, stochastic and RSI are on their way down from the overbought levels, which indicates a return in selling momentum. Both oscillators have a long way to go before reaching the oversold area so sellers could stay in control for a while, possibly taking bitcoin price to the triangle support around $380. Near-term support is also located at the 100 SMA dynamic inflection point around $400. Market Events Risk appetite has been in play so far this week, even as data has been mixed. This has supported higher-yielding assets and cryptocurrencies against the US dollar, although economic reports from the US recently beat expectations.The ISM manufacturing PMI rose from 48.2 to 49.5, outpacing the consensus at 48.5. Last week, the US GDP reading was upgraded from 0.7% to 1.0% instead of being downgraded to the projected 0.4% figure.However, […]
