Bitcoin Price Technical Analysis for 05/18/2016 – Ready for a Triangle Breakout?

Bitcoin Price Key Highlights

  • Bitcoin price is still stuck inside its symmetrical triangle consolidation pattern on the 4-hour time frame.
  • Price is hovering close to the support around $450 for now, still deciding whether to make a bounce or break.
  • A bounce could lead to a test of resistance at $455 while a breakdown could trigger a longer-term downtrend for bitcoin.

Bitcoin price could be due for a triangle breakout this week as there are top-tier catalysts on deck.

Technical Indicators Signals

The 100 SMA is above the 200 SMA on the 4-hour time frame so a bounce seems more likely. However, the gap between the moving averages is narrowing so a downward crossover could be seen, likely spurring a surge in bearish momentum soon.

Stochastic is on its way down but is currently turning around, possibly indicating a return in buying pressure. RSI is also on middle ground, barely offering strong directional clues at the moment.

A break below the triangle support could lead to a drop towards the triangle lows near $430. On the other hand, rally past the triangle resistance could lead to another test of the longer-term ceiling at $470.


160518_bitcoinRead more ... source: TheBitcoinNews