Bitcoin Price Technical Analysis for 02/02/2016 – Ready for Another Break Out?

Bitcoin Price Key Highlights

  • Bitcoin price recently broke below a long-term consolidation pattern but is now stuck in a new one.
  • Price is trading inside a symmetrical triangle and is approaching the peak of the formation, indicating that another breakout is imminent.
  • Price could still test the top of the triangle around $375 and the 100 SMA, which might hold as resistance.

Bitcoin price is due for yet another breakout, and the technical indicators suggest that the path of least resistance is to the downside.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA, which suggests that the downtrend could carry on. RSI is on middle ground, though, so buyers and sellers might still be undecided.

Meanwhile, stochastic is on the move up but is nearing the overbought region. Once the oscillator turns down from that area, bearish momentum could pick up and pave the way for a downside break.

If that occurs, bitcoin price could fall to the bottom of the triangle around $350. Stronger selling pressure could take it down to the next long-term area of interest at $300. On the other hand, an upside break could bring bitcoin price to the top of the triangle around $420, with stronger bullish

Read more ... source: TheBitcoinNews