Bitcoin Price Key Highlights
- Bitcoin price recently broke past the symmetrical triangle consolidation resistance visible on its short-term time frames.
- Price made a push higher but bulls still seem to be struggling to maintain the momentum.
- This could be indicative of bitcoin price action from here as the lack of liquidity has yielded lower volatility.
Bitcoin price is struggling to establish its uptrend but the lack of market liquidity is preventing it from gaining stronger bullish traction.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA on this time frame so the path of least resistance is to the downside, but the gap between the moving averages is narrowing so an upward crossover might be due. In that case, bulls could step up their game and push for stronger gains, possibly until the highs at $1100.
These moving averages are close to the triangle support, which could be the line in the sand for any major correction. A break below this area could signal that the previous rally was a fakeout and that sellers are regaining control of bitcoin price action.
Stochastic is already indicating overbought conditions and is turning lower, also confirming that bears are getting ready to take the upper hand. RSI is also pointing down so bitcoin price could follow suit if it moves lower to reflect a pickup in bearish momentum.
Market Events
Recent updates in the Chinese bitcoin market have put investors back in a cautious mood, waiting for announcements on stricter regulation or potential penalties for cryptocurrency holders. This phenomenon was seen earlier this year as rallies retreated on the government’s crackdown efforts but the climb soon resumed when these issues were out of the headlines.
News that a couple of exchanges had to halt client withdrawals to comply with the ongoing investigation on money laundering put bitcoin price on the back foot, as several investors cashed in on their holdings immediately. For now, markets are in wait-and-see mode but a return in confidence and risk appetite could still keep bitcoin afloat.
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