Analysis Bitcoin

Bitcoin Price Analysis for 01/30/2017 – Triangle Breakout Due

Sarah Jenn | January 30, 2017 | 5:06 am
bitcoin
Analysis

Bitcoin Price Analysis for 01/30/2017 – Triangle Breakout Due

Sarah Jenn | January 30, 2017 | 5:06 am

Bitcoin Price Key Highlights

  • Bitcoin price consolidation has been getting tighter in the past few days as traders remain wary of ongoing industry changes.
  • On the 1-hour time frame, a symmetrical triangle can be seen with price approaching the peak of the formation.
  • A break past the triangle resistance around $930 could spur a longer-term climb while a move below support at $920 could trigger a selloff.

Bitcoin price is stuck in a symmetrical triangle consolidation pattern for now and its breakout could set the tone for long-term action.

Technical Indicators Signals

The 100 SMA is below the 200 SMA for the time being so the path of least resistance is to the downside, but an upward crossover is brewing so buyers could regain control. However, these moving averages have also been oscillating for the past few days while consolidation has been in play.

Stochastic is on the move up to signal that buyers are in control of bitcoin price action for now. In that case, an upside breakout might have stronger probability compared to a break lower. Meanwhile, RSI is treading sideways and barely offering strong directional clues at the moment.

Market Events

Investors are still feeling anxious about developments in the Chinese bitcoin arena, which is the largest component of the market. Over the past few weeks, authorities have been cracking down on exchanges and clients, leading some firms to introduce restrictions on their products in order to make traders more aware about the risks involved and to dampen activity to some extent.

Further action from Chinese officials could weigh on bitcoin volumes in the country, which could exert additional downside pressure on prices. After all, investors have been gradually booking profits from their long positions from late last year and early this year for fear of being subject to government investigation.

Still, traders are also shying away from the dollar due to the ongoing uncertainty surrounding the Trump administration. With that, more consolidation could be expected in the coming days ahead of market catalysts such as the FOMC statement and US NFP release later this week.

Charts from SimpleFX

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