Bitcoin Price Analysis: BTC/USD Triangle Top Still Holding (Bitcoinerx)
Bitcoin has formed lower highs and higher lows to create a symmetrical triangle on its daily time frame. Price is currently testing the resistance, still deciding whether to make a bounce or a break.
A bounce could take price back to the bottom of the triangle around $9,600 while a break higher could spur a rally that’s around the same height as the chart formation. The triangle spans $9,000 to around $13,500 so the uptrend might last roughly $4,500.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the resistance is more likely to break than to hold. In addition, the 100 SMA also seems to be holding as dynamic support and bitcoin price is forming a short-term flag continuation pattern.
RSI is on middle ground, though, barely providing any clues on the direction of the next move. Still, the oscillator was previously on its way up, so buyers might still have more energy left. However, stochastic has already reached the overbought zone and is starting to turn lower to signal a return in selling momentum. Stronger bearish pressure might even spur a break of support and a drop of the same height as the chart pattern.
BTC/USD Chart – TradingViewBitcoin and Monero are the only coins in the green over the past trading day as sentiment has recovered by remains feeble. Nonetheless, long-term fundamentals for bitcoin are looking solid as traders anticipate stronger institutional volumes in the weeks ahead, possibly reducing volatility or giving momentum to any breakouts.
Apart from the “halvening” that’s not due until next year, the record hash rate in bitcoin is another factor that’s keeping price supported. This is a measure of the bitcoin network’s processing power, and the gains have been accompanied by rising transaction values that hit their highest level since mid-July.
Images courtesy of TradingView
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