Bitcoin (BTC) Price Watch: New Triangle Pattern Forming
Bitcoin Price Key Highlights
- Bitcoin price has formed higher lows and found resistance at the $7,700 level to create an ascending triangle.
- Price is testing the top of the triangle and might be due for a move back to support.
- Technical indicators are suggesting that support might continue to hold and lead to another bounce to the top.
Bitcoin price is consolidating inside an ascending triangle pattern and is testing the top.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This suggests that the rally is more likely to resume than to reverse or that support is more likely to hold than to break.
However, the gap between the moving averages is narrowing to signal a potential downward crossover, indicating weakening bullish momentum. For now, both moving averages might keep holding as dynamic support just above the bottom of the triangle.
RSI is heading lower but looks ready to move back up, reflecting a return in bullish pressure. Stochastic, on the other hand, continues to slide and signal that sellers still have the upper hand.
A break below support could mean a move of the same height as the triangle, which spans $7,000 to $7,700. Similarly a break past the top could spur a rally of the same size.
Bitcoin has been rejected at the $7,700 key area for a few times already, indicating that buyers are not quite confident enough to push price past that level yet. For now, there have been no major updates in the industry, although there have been some factors keeping the cryptocurrency supported.
For one, the ongoing crisis in Venezuela led to strong volumes in bitcoin versus the local currency, which is rapidly losing value to hyperinflation. Citizens are turning to bitcoin as an alternative financing or investment, which could keep activity supported while the crisis goes on.