Bitcoin Price Key Highlights
- Bitcoin price has formed lower highs and higher lows, creating a symmetrical triangle on its 1-hour chart.
- Price is currently testing the resistance and might be due for a move back to support.
- The triangle formation spans $2100 to $2900 so the resulting breakout could be of the same size.
Bitcoin price is consolidating in a symmetrical triangle at the moment so it might be best to wait for a convincing break before taking any positions.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA at the moment but seems to be attempting to move higher, which might signal that the path of least resistance is to the upside. In other words, a break higher could be more likely to happen than a breakdown if that upward crossover materializes.
Stochastic is turning lower after showing a bearish divergence, though, which means that selling pressure is in play. RSI is also pointing down to show that sellers are in control of bitcoin price action for now.
The triangle is around $800 tall so a break past the $2500 resistance could spur a move of the same size or at least a test of the all-time highs near $3000. On the other hand, a break below the $2400 area could spur a drop of $800 or a test of the $2000 major psychological level in the near-term.
The trading week could be off to a slow start since it’s a long weekend in the United States with the Fourth of July festivities underway. Also, traders are likely to hold out for major market catalysts due later in the week.
One of these is the NFP release which might signal how the U.S. economy and the dollar might fare in the next few months. Another dismal read could cast doubts on the Fed’s rate hike timeline and cause U.S. bond yields to drop, which might then renew demand for bitcoin.
On the other hand a very strong read could shore up demand for the U.S. currency and lead traders to liquidate more of their cryptocurrency holdings, especially since there has been a lack of positive news from the industry itself so far.