Bitcoin Price Key Highlights
- Bitcoin price recently formed lower highs and higher lows to consolidate in a symmetrical triangle.
- Price appears to have completed an upside breakout, signaling that more gains are underway.
- Technical indicators, however, are reflecting a slowdown in bullish momentum.
Bitcoin price is breaking out of its triangle consolidation pattern but might still be facing some bearish pressure.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, there’s still a chance for bearish momentum to return and prove that the break higher was a fake out.
Then again, bitcoin price is trading above the 200 SMA dynamic inflection point to reflect stronger bullish pressure. This could spur a bullish crossover soon, especially since it seems the moving averages are just oscillating. In that case, price could climb by the same height as the chart formation, which spans $6,000 to around $8,400.
Stochastic is pointing up to show that buyers have the upper hand but the oscillator is already dipping into the overbought region to signal exhaustion. Turning back down could bring sellers back in and lead to a dip to nearby support areas at the broken triangle top or even the bottom of the triangle again. RSI is also heading north and this oscillator has more room to climb before indicating overbought conditions, so buyers could stay in control a bit longer.
Sentiment in the industry seems to be turning positive again, following a couple of positive industry updates. Google will be lifting its ban on bitcoin and ICO ads by next month, likely reviving interest from the general public. However, the search engine will only approve ads from regulated entities targeting audiences in the US and Japan only.