Bitcoin has formed lower highs and higher lows to consolidate inside a symmetrical triangle formation. Price is bouncing off the top of the triangle and could be due for another move to support.
The 100 SMA is above the longer-term 200 SMA, though, indicating that the path of least resistance is to the upside. In other words, support is more likely to hold than to break. Also, these moving averages appear to be holding as dynamic support levels, so losses could stay in check.
If buyers are strong enough, they could push for a break past the triangle top around $4,400 and a rally that’s the same height as the chart pattern. This spans $3,600 to around $4,700 which means that the uptrend could last by around $1,100.
However, RSI is on the move down to signal that sellers have the upper hand and could keep pushing for more declines. Stochastic is also pointing down to indicate that bears have the upper hand. Both are closing in on the oversold region, though, so sellers might be exhausted soon and willing to let buyers take over.
Still, a break below the triangle support at the $4,000 major psychological mark could trigger a slide that’s at least the same height as the triangle formation.
Bitcoin has paused from its slide after a rough couple of weeks thanks to renewed expectations for institutional investments. There was confirmation that Nasdaq would continue with its Bitcoin futures launch likely early next year as it works to get CFTC approval and partners with VanEck to get more data from more exchanges.
There is still a lot of downside pressure, though, as bulls are also being cautious and quick about booking profits on bounces for fear of yet another rout. It would take a significantly strong positive development to sustain any rallies from breakouts and convince more traders that Bitcoin has bottomed out.
Images courtesy of TradingView.
Tags: bitcoin, BTC, BTC/USDRead original article
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