Bitcoin Price Key Highlights
- Bitcoin price bounced off the symmetrical triangle support as predicted in the earlier blog post.
- Price is now setting its sights back on the triangle resistance around $450.
- Technical indicators are suggesting that a selloff might be in order.
Bitcoin price is moving inside a symmetrical triangle consolidation pattern and is on track towards testing the resistance.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA, confirming that the path of least resistance is to the downside and that the triangle resistance near $450 is likely to hold. In addition, the 200 SMA lines up with the top of the triangle as a dynamic resistance level.
For now, price is encountering some resistance at the 100 SMA and if this holds, another test of the support could take place. Stronger selling momentum might even trigger a downside breakout.
Stochastic looks ready to turn down from the overbought region, possibly indicating a return in selling pressure. RSI is already pointing down and heading south so bitcoin price could follow suit. Keep in mind that bitcoin price came from a sharp drop following a test of the longer-term resistance at $470.