Bitcoin Price Key Highlights
- Bitcoin price has been on a tear lately but has yet to break past another key resistance on its move higher.
- Price has been trading inside a descending triangle on the daily chart and is just testing the top.
- A move past this level could encounter one more dynamic resistance before setting its longer-term climb.
Bitcoin price has broken one upside barrier after another and is testing another major one on its move higher.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, there’s still a chance for the selloff to resume from here. The shorter-term moving average also lines up with the triangle top at $7,600 to add to its strength as a ceiling.
A break past this level could take bitcoin price up to the next dynamic resistance at the 200 SMA near $9,000. Note that the triangle pattern spans $6,500 to $12,500 so the resulting rally could be of the same height.
RSI is already indicating overbought conditions and turning lower could bring sellers back in. If that happens, bitcoin price could make another dip to nearby support zones or all the way down to the triangle support. Similarly stochastic is also indicating overbought conditions.
Bitcoin and its peers have had a strong run last week and bulls hope that this could be sustained this time. Note, however, that the earlier positive performance in the first week of the month led to gains being returned on negative rhetoric the following week.
Still, some dollar weakness on trade tensions and Trump’s remarks have turned out positive for bitcoin price. After all, traditional markets like stocks and commodities are more sensitive to these developments compared to cryptocurrencies that are currently being buoyed by increased institutional interest.