Bitcoin Price Key Highlights
- Bitcoin price is still consolidating in a triangle pattern visible on the 4-hour time frame after bouncing off the top.
- Price could be due for a test of support but could attempt another break past the triangle resistance.
- A breakout in either direction could lead to a rally or a selloff that’s the same height as the chart formation.
Bitcoin price is still inside its triangle consolidation pattern but may be due for a breakout soon as it approaches the peak.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, support is more likely to break than to hold. In that case, bitcoin price could fall by roughly $2,500 or the same height as the triangle.
However, the 100 SMA dynamic inflection point appears to be holding as support at the moment as it lines up with a short-term rising channel bottom. Another test of the triangle top could be in the works but this lines up with the 200 SMA dynamic resistance at $6,750.
Stochastic is moving up to show that buyers are in control of the game and could push for more bitcoin price gains. This oscillator is just halfway through its move to the triangle top, so there could be plenty of upside momentum left. Similarly RSI is heading north so bitcoin price could follow suit while buyers have the upper hand.
Bitcoin bulls continue to defend support areas more strongly these days, perhaps owing to a few positive developments. First is that the SEC refrained from giving a rejection to the bitcoin ETF applications and instead opened the comment period last week. Next is Google’s plans to reverse its bitcoin and ICO ad ban on its platforms, although it would be approving ones from regulated entities in the US and Japan only.