Bitcoin Price Key Highlights
- Bitcoin price is attempting another upside break from its descending triangle visible on the longer-term charts.
- If this is a decisive break, price could climb by the same height as the triangle, which spans close to $4,000.
- Technical indicators are giving mixed signals but there are signs of bullish momentum building up.
Bitcoin price is making another attempt at a bullish triangle breakout to ultimately confirm that more gains are in the cards.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA so the path of least resistance might be to the downside. In other words, there’s still a chance that resistance might hold and push bitcoin price back to the bottom of the triangle just above $6,000.
Then again, the moving averages could simply be oscillating to reflect consolidation. A candle closing past these dynamic inflection points could be an early signal of bullish pressure and a hint that a crossover might happen soon.
Stochastic is pointing up to confirm that buyers are in control and have enough energy to push for more gains before overbought conditions are seen. RSI is also heading north so bitcoin price could follow suit, but this oscillator is nearing overbought levels. If sellers return, price could once again test support near $6,000.
Now that market participants seemed to have calmed over the earlier bitcoin spike, the attention seems to be focused on the positive developments in the industry. For one, the launch of Fidelity’s institutional investment platform for bitcoin and ethereum could usher in strong volumes from big hedge funds and the like, leading to a much-anticipated rebound for the year.
Analysts even point to how this price behavior was already exhibited back in 2014 when it consolidated inside a triangle pattern then broke out and surged in the years that followed.