Bitcoin Price Key Highlights
- Bitcoin price is still stuck inside its triangle consolidation pattern on the 1-hour time frame.
- Price is nearing the peak of its formation so a breakout could take place soon.
- Technical indicators are still giving mixed signals on which direction the breakout might go.
Bitcoin price is nearing the peak of its consolidation pattern, which means that a breakout is bound to happen soon.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA for now to indicate that the path of least resistance is to the upside. In other words, support is more likely to hold than to break or an upside break might be more likely than a breakdown. In that case, bitcoin price could be looking at a rally that’s at least the same height as the chart formation, which spans $6,100 to $7,300.
Stochastic is heading higher so bitcoin price could also follow suit while buyers have the upper hand. However, the oscillator is nearing overbought levels to indicate bullish exhaustion and a possible return in selling pressure. RSI, meanwhile, is cruising sideways to reflect consolidation. The moving averages have also been consolidating to signal range-bound conditions.
Bitcoin price has had a slew of positive developments in the previous week to keep it supported but investors seem to be holding out for more catalysts to sustain a climb this time. Momentum has been on bitcoin’s side but it would still need a few more positive developments to draw more buyers in.
The launch of bitcoin futures on ICE could bring volumes in, but keep in mind that CME futures were being blamed for the drop in bitcoin price late last year. After all it would allow investors to take short bets on the digital asset, possibly taking it for a break below consolidation onto new lows.
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