Bitcoin Price Key Highlights
- Bitcoin price has formed lower highs and higher lows, creating a symmetrical triangle on its 4-hour time frame.
- Price is currently testing the triangle resistance and waiting for more bullish momentum to trigger an upside break.
- Technical indicators are giving mixed signals at the moment but a breakout could provide longer-term direction for bitcoin trading.
Bulls and bears are still fighting over where to take bitcoin price next, as a break from this consolidation pattern would confirm which side wins.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In other words, an upside breakout might be more likely compared to a downside one. If that happens, bitcoin price could climb to the triangle highs at $765 or higher.
On the other hand, a downside break could bring it down to the triangle lows at $670. The 100 SMA is holding as dynamic resistance for now and might continue to keep gains in check since it coincides with the top of the triangle.
Also, stochastic is on the move up to show that bullish pressure is still present but the oscillator is nearing the overbought zone to indicate that the climb is already exhausted. Once it turns lower, bears could return to the game and push for a move back to the triangle bottom or a breakdown. Meanwhile, RSI is still making its way up so there’s room for more gains.
Market Events
The US dollar has been surging against its peers in the past few days, buoyed by post-election optimism and FOMC rate hike expectations. However, the rallies have been subdued this week, indicating that the Greenback has probably peaked and could be ready to turn lower.
There are a number of top-tier catalysts from the US economy this week, likely providing more clues on whether the Fed can afford to tighten monetary policy by the end of the year or not. Apart from that, Fed Chairperson Yellen’s assessment of the economy and how the new US President could impact their outlook would carry a lot of weight for dollar and bitcoin price action.
Charts from SimpleFX