BTCUSD Price Technical Analysis – Descending Triangle Pattern BTCUSD has formed lower highs and found support at $594.75, creating a descending triangle pattern on its 1-hour time frame. Price seems to be on its way towards testing the triangle support from here. The 100 SMA is below the 200 SMA so the path of least resistance is to the downside. Also, the 100 SMA appears to be holding as dynamic resistance for now, with the longer-term 200 SMA closer to the top of the triangle. RSI is pointing down and moving south so BTCUSD could follow suit. However, this indicator is nearing the oversold area, which suggests that sellers are getting exhausted and might allow buyers to take over, possibly leading to a bounce back up to the resistance near $600. Stochastic is moving up to show that buyers are on top of their game. If bearish pressure persists and the oscillator turns down soon, a downside break of the triangle support could lead to a slide of around $30, which is roughly the same height as the chart formation. Similarly, an upside break from the triangle resistance could also lead to a climb of around $30. All this could hinge on the presidential debates scheduled throughout the week, as economic policies and poll results could greatly influence financial market moves and overall risk sentiment. Risk aversion could favor the safe-haven US dollar, although too much uncertainty in the economic outlook could wind up discouraging traders from putting money in US assets. With that, be on the lookout for spikes in volatility throughout the week since FOMC voting members also have testimonies lined up. Indications that the Fed can be able to hike in December could still keep the dollar supported against bitcoin. To contact the reporter of the […]
