Bitcoin Price Technical Analysis for 06/03/2016 – Another Breakout Looming?

Bitcoin Price Key Highlights

  • Bitcoin price has been stuck in consolidation once more, as traders are waiting for more directional clues.
  • Today’s top-tier events and potential profit-taking ahead of the weekend could spur stronger moves.
  • Price has formed higher lows on the 1-hour time frame and found resistance around $550, creating a short-term ascending triangle pattern.

Bitcoin price might be in for another sharp breakout since it is approaching the peak of its short-term triangle consolidation pattern.

Technical Indicators Signals

The 100 SMA is above the 200 SMA on the 1-hour time frame, suggesting that the path of least resistance is to the upside. In that case, a candle closing past the $550 triangle top could lead to another rally to the latest highs at $600.

However, the gap between the moving averages is narrowing so a downward crossover could be imminent. If that happens, bears could take its as a cue to push bitcoin price below the triangle support at $545, allowing the selloff to resume.

Stochastic is on the move up but is nearing the overbought zone, hinting that bullish pressure could run out soon. Similarly, RSI is heading north so bitcoin price could still follow suit, but near-term resistance is also located at the 100 SMA

Read more ... source: NewsBTC USA