Bitcoin Price Key Highlights
- Bitcoin price formed lower highs and higher lows, consolidating inside a symmetrical triangle on its 1-hour chart.
- Price is approaching the peak of the pattern, so it’s likely due for a breakout soon.
- Bitcoin is currently testing the triangle resistance which might keep gains in check.
Bitcoin price is inside a symmetrical triangle consolidation pattern and the direction of its breakout could set long-term trends.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. This suggests that the resistance is more likely to hold than to break or that support could also be broken.
However, bitcoin price has moved slightly above the moving averages to signal that bulls are putting up a fight. RSI is also on the move up to signal that buying momentum is present.
Stochastic is heading higher but nearing overbought levels to signal rally exhaustion. The chart pattern spans $9,000 to $14,000 so the resulting breakout could lead to either a $5,000 rally or selloff.
The dollar drew some support in recent trading sessions when US President Trump assured that the currency will strengthen and that he wants it that way. He added that Treasury Secretary Mnuchin’s remarks were taken out of context.
So far, traders are still reeling from the crackdown in China and South Korea, waiting for a strong enough catalyst to revive the previous rallies. However, the longer the weakness lasts, the more investors are convinced that they should start liquidating, thereby worsening the drop.
The US is set to release its advance GDP reading later today and this might lead to some short-term moves for BTCUSD. Geopolitical risk could also be a factor that props bitcoin price higher, but so far the gains haven’t been sustained.
As it is, more and more analysts are commenting on how bitcoin was never really intended to be a store of value or that rival altcoins could eventually outpace it later on.