Bitcoin Price Technical Analysis for 04/20/2016 – Upside Breakout, Where to Next?

Bitcoin Price Key Highlights

  • Bitcoin price just broke above the top of the rising wedge pattern highlighted in yesterday’s update.
  • This upside breakout suggests that bitcoin could be ready for more gains with bullish momentum picking up.
  • Zooming out to the longer-term time frames shows that next possible resistance areas.

Bitcoin price broke out of its short-term consolidation pattern and is eyeing further upside, possibly until the long-term channel resistance.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA, confirming that the path of least resistance is to the upside. The rising wedge pattern spans $400-420 so the resulting rally could last by $20 until $455-460, which is also around an area of interest and former support.

The top of the rising channel on the 4-hour chart is located around $470 so bitcoin price might need a lot of bullish pressure before reaching that level. For now, stochastic is almost in the overbought region, which suggests that buyers might need to take a break soon.

Similarly, RSI is nearing the overbought levels and turning lower could bring sellers back in the mix. In that case, a pullback to the broken wedge resistance could take place while a stronger return in bearish momentum could lead to

Read more ... source: TheBitcoinNews