e bullsBitcoin Price Key Highlights
- Following an upside break from its triangle consolidation pattern last week, bitcoin price made a sustained climb to an area of interest.
- A bullish flag pattern formed right on the support-turned-resistance area and now bitcoin price has broken through that ceiling again.
Bitcoin price could be eyeing more gains from here, as the upside flag breakout reflected stronger bullish momentum.
Where to Next?
Bitcoin price might have its sights set on this month’s highs near the $500 mark, as the average directional index is showing trending market conditions. The indicator has awoken from its slumber below the 50.0 level to climb higher, showing that the period of consolidation is over.
For now, the 100 SMA is below the 200 SMA so there’s a chance that the selloff might resume at some points. If the moving averages do make an upward crossover, bitcoin price gain more upside pressure.
Note that the mast of the bullish flag pattern spanned from $320 to $350 so the resulting upside breakout could last until $380 or beyond. Stochastic is on the move up but is already in the overbought zone so there may be a bit of room to go north but buying momentum might ease up soon.
RSI is also heading north but is in the overbought vicinity so a drop might take place later on. Bitcoin price could pull back to the area of interest at $350 to gather more bullish energy before resuming its climb.
The next area of interest is located at $380-400, at which profit-taking activity might be seen. Keep in mind that the US economy is set to print its November jobs data later on this week and another strong figure might lead to a sharp boost for the US dollar and a corresponding decline in bitcoin price.
Intraday support level – $350
Intraday resistance level – $380
Charts from Bitstamp, courtesy of TradingView