Bitcoin Price Key Highlights
Bitcoin price previously consolidated in a short-term symmetrical triangle pattern visible on the 1-hour chart.
Price then broke below the triangle support, suggesting a potential reversal from its earlier uptrend.
A complex double top pattern can also be observed, with price currently testing the neckline around $420.
Bitcoin price could be due for more declines after making a downside break of consolidation and forming a reversal pattern. Technical Indicators Signals
Technical indicators are suggesting a potential bounce for now, with the 100 SMA above the 200 SMA and oscillators moving out of the oversold levels. Both RSI and stochastic are also showing slight bullish divergences, hinting that buyers could come back in the game and trigger a pullback or rally for bitcoin price.
A pullback could lead to a test of the broken triangle support near $430 and the moving averages, which might hold as dynamic inflection points. A larger rally could lead to a move up to the tops around $440-450 or the previous year highs at $500.
Meanwhile, a continued selloff could lead to a drop to the next support around $380-400 and all the way down to $300. The triangle is approximately $50 tall so the resulting drop could last by the same amount. Market Events Data from the US has been stronger than expected yesterday, as the ADP non-farm employment change report hinted of a potential upside surprise in the NFP report. The ADP reading showed a 214K gain in hiring versus the projected 185K increase, although the previous report showed a downgrade.Still, risk appetite was present in the financial markets yesterday, lifting most of the commodity currencies despite the buildup in oil supply. For today, the ISM non-manufacturing PMI is due and another strong reading could mean more dollar […]
