Bitcoin Price Key Highlights
- Bitcoin price appears to be gaining a bit more traction on its bounce off the triangle support.
- Price could be ready to test the triangle resistance again, and this lines up with the 61.8% Fib level.
- Technical indicators are suggesting that the rallies could go on for a bit longer.
Bitcoin price seems to have found support at the bottom of the descending triangle and may be ready to test the top again.
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. In other words, support is more likely to hold than to break. However, it’s also worth noting that bitcoin price is currently below these levels to reflect a bit of bearish pressure.
RSI is still heading higher, though, so buyers have the upper hand. This might be enough to take bitcoin up to the triangle resistance closer to $7,000 or the 50% Fib at the $6,800 level. The 38.2% Fib is closer to the 200 SMA dynamic inflection point, which could add to its strength as resistance.
Stochastic is also heading north so bitcoin price could follow suit until the oscillator hits overbought levels and turns back down. In that case, another test of the lows could happen. A larger rally past the triangle top, on the other hand, could reflect a return in strong bullish pressure, possibly leading to a rally that’s the same height as the triangle.
BTCUSD Chart from TradingView
Bitcoin appears to be drawing a bit more support as bulls continue to defend the long-term floor. It also helps that this particular digital asset has been increasing its market dominance, something that typically happens during prolonged declines across cryptocurrency prices.
Besides, market sentiment appears to have improved on recent trade developments, encouraging traders to flock back to riskier assets like commodities and cryptocurrencies.
