Bitcoin Price Technical Analysis for 06/28/2016 – Ascending Triangle Formation

Bitcoin Price Key Highlights

  • Bitcoin price is back in consolidation after making strong moves in the past few weeks.
  • Price has formed higher lows and found resistance around $680, creating an ascending triangle pattern.
  • Bitcoin has just bounced off the triangle support and appears ready for another test of resistance.

Bitcoin price is consolidating in an ascending triangle pattern while market participants wait for more catalysts.

Technical Indicators Signals

The 100 SMA is below the 200 SMA so the path of least resistance is to the downside. However, the gap between the two moving averages is narrowing and an upward crossover seems imminent, possibly indicating that buyers are regaining control. Bitcoin price is finding resistance at the 200 SMA, which usually holds as a dynamic inflection point.

RSI is already indicating overbought conditions and is starting to turn lower, indicating that bearish pressure might return. Stochastic is still on the move up but is also near the overbought area, which means that buyers are getting exhausted and may let sellers take over.

If so, a break below the triangle support around $620 could take place and force bitcoin price to fall. The next potential support is located at the $580 level, at which several orders might be located.

Read more ... source: NewsBTC USA