Bitcoin Price Key Highlights
- Bitcoin price has formed lower highs and higher lows, creating a symmetrical triangle consolidation pattern on its 1-hour chart.
- Price is currently testing support and a bounce might take it up to the resistance near $7000.
- A break lower, on the other hand, could lead to a selloff of the same height as the triangle formation.
Bitcoin price is consolidating inside a symmetrical triangle pattern on its short-term chart, and its breakout direction could signal where it could go in the long-term.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that support is more likely to break than to hold or resistance is more likely to hold than to break. The moving averages could also hold as nearby inflection points before bitcoin price even tests the actual top of the triangle.
Stochastic is still heading north to indicate that buyers have some energy left in them to take bitcoin price higher from here. However, the oscillator is also approaching overbought levels to reflect weakening bullish momentum. Turning back down could draw sellers back in.
RSI, on the other hand, has plenty of room to climb so bitcoin price could follow suit. A break past the $7000 mark could lead to a rally of around $1500 or the same height as the triangle. Similarly, a break below support around $6700 could lead to a selloff of $1500 in height.
Bitcoin price drew some support from headlines indicating that Soros may be switching his stance on cryptocurrencies. Recall that the market guru said that bitcoin is in a bubble a few months back, but it’s apparent that Soros Fund Management is taking steps to start investing in the cryptocurrency space, along with other top hedge funds that were previously averse to altcoins.
However, the approaching tax deadline this month led to a bout of profit-taking that weighed heavily on bitcoin price. Aside from that, bans in India and Pakistan, along with continued scrutiny by the SEC is keeping a lid on bitcoin price lately.