BTC Price Advancing Towards $370 – Formulating Ascending Pattern

Bitcoin price rose to a high of around $365 earlier today, which is $5 short of yesterday’s high. Despite failure to print a higher high today, bitcoin price is still advancing along the new upward sloping trend line that we spotted yesterday. If the market’s bulls succeed at sustaining the current buying volume, we can expect the $370 resistance level to be tested within the next 24 hours.

Decrescendo Bullish Bursts On The 1 Hour Charts:

By examining the 1 hour (BTC/USD) charts from bitstamp (look at the below chart); plotting the 20, 50 and 100 SMMAs and keeping the upward sloping trend line we spotted during yesterday’s analysis, we can conclude the following:

• During the past 48 hours, bitcoin price has been surging with a pattern that is characterized by bursts, each consisting of an upward surge followed by a downward price correction wave. Yesterday’s burst was stronger than today’s, yet the price is still advancing steadily along the new uptrend slope. A third successive weaker wave is expected to take bitcoin price to test the resistance at $370 within the next few hours.

• Bitcoin price is currently way higher than the 20, 50 and 100 SMMAs, but the 20 period SMMA is traveling on top of both of the 50 and 100 period SMMAs which reflects the bullish trend reversal we have been witnessing during the past 48 hours.

Atypical Ascending Triangular Pattern On The 1 Hour Charts:

We will study the same 1 (BTC/USD) chart from Bitstamp but after zooming out and plotting the stochastic oscillator (look at the below chart). We can notice the following:

• An atypical ascending triangular pattern can be spotted now on the chart (The purplish triangle ACD on the below chart). An ascending triangle represents a bullish pattern that signals that the price of an asset is heading to higher resistance levels upon completion. A typical ascending triangle is formed by the convergence of a flat trend line between 2 resistance levels (AD) and an ascending trend line between 2 support levels (CD), yet on the below chart the AD trend line is not flat, so it is forming an atypical ascending triangle. As we can see on the below chart, bitcoin price traded between these two trend lines, until it broke out eventually to the North around 48 hours ago.

• The new trend line is forming an angle of 53◦ on the horizontal axis, which is almost equal to the angle forming between the new breakout upside trend line (green line) and the CD trend line of the ascending triangular pattern.

• The stochastic values around 46 now and the curve is sloping downwards, so conditions are favorable for a further rise.

Conclusion:

Bitcoin price rose today to print a high of $365, yet it failed to beat yesterday’s high ($370). Our technical analysis in favor of continuation of the new bullish wave so that we can see the $370 resistance level tested within the next 24 hours or so.

Charts from Bitstamp, hosted on Tradingview.com