Bitcoin Price Key Highlights
- Bitcoin price has recently broken out of its symmetrical triangle pattern but has since pulled back for a retest.
- Price continues to hover around the broken resistance, though, and might still have a chance at falling back in consolidation.
- If the area of interest continues to keep losses in check, bitcoin price could resume a climb that’s the same height as the triangle.
Bitcoin price recently closed past the top of its triangle formation but this might still prove to be a fake out.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s still a chance for the selloff to resume. However, the gap between the moving averages has narrowed to signal weakening selling pressure and a possible bullish crossover.
If that happens, price could climb by the same height as the triangle pattern, which spans around $6,000 to $8,500. Stochastic is already on the move up to confirm that buyers have the upper hand, but the oscillator is also nearing overbought levels to reflect exhaustion. RSI appears to be either treading lower or moving sideways to signal further consolidation.
Bitcoin capped off yet another month in the red yet a good number of analysts still expect price to make a strong rebound before the end of the year. In particular, Tom Lee predicts that the catalysts set to roll in early 2019 could be enough to lead to a buildup in long positions and therefore a strong rally. He says:
“$6,000 is a level that is more important than we realized. Earlier this year, we were pointing at $6,000 as breakeven for bitcoin mining, so that level should hold. The fact that bitcoin is holding here is very good news. I think there are catalysts in the year end, so I think despite the lower highs we’ve seen, I think we’re starting to reverse.”