Bitcoin Price Technical Analysis for 03/07/2016 – Test of Triangle Support

Bitcoin Price Key Highlights

  • Bitcoin price recently encountered resistance at the top of the symmetrical triangle visible on its 4-hour and daily time frames.
  • This was enough to send price back to the bottom of the chart pattern and test support at $380.
  • Technical indicators are suggesting that another climb to the triangle resistance might take place.

Bitcoin price just came off a test of the triangle support and might be due for another move towards resistance.

Technical Indicators Settings

The 100 SMA is above the 200 SMA, signaling that the path of least resistance is to the upside. Stochastic is on the move up, which also confirms that buyers are in control of price action for now, likely pushing for a test of the triangle top around $420-430.

RSI is also heading north so price might follow suit. Stronger bullish pressure might even lead to an upside break of the triangle resistance and a prolonged uptrend for bitcoin price. In that case, price could resume its climb to the next resistance around $465 then onto its previous year highs at $500.

On the other hand, a break below the triangle support could lead to a long downtrend for bitcoin price, likely taking it down to the next

Read more ... source: TheBitcoinNews