Bitcoin Price Key Highlights
- Bitcoin price has surged up to the $300 mark once more, testing the long-term ascending triangle resistance visible on the daily time frame.
- An upside breakout could put bitcoin price on track towards reaching new highs while a return in selling pressure could lead to a test of the triangle support.
Bitcoin price is enjoying strong bullish momentum at the moment, with the latest rally taking it up to the top of the ascending triangle around $300.
Bounce or Break?
Technical indicators are showing that the rally might already be overdone, as stochastic and RSI are both in the oversold regions. Turning lower could draw bearish momentum back in, leading to a move down to the triangle support at $275.
The 100 SMA is above the 200 SMA for now but these moving averages are still edging close to each other, which means that a downward crossover might be possible. In that case, the path of least resistance would be to the downside, also favoring another test of the triangle support.
A move past the previous spike to $317 might be enough to confirm an upside breakout, although bitcoin price action is pretty volatile and prone to fake outs. Bulls might wait for significant upside momentum then a pullback to the triangle resistance before establishing larger long positions.
Intraday support level – $275
Intraday resistance level – $317
Charts from TradingView