Bitcoin Price Technical Analysis for 08/02/2016 – Bearish Continuation Signal?

Bitcoin Price Key Highlights

  • Bitcoin price has been consolidating on the 4-hour time frame, moving inside a symmetrical triangle pattern with its higher lows and lower highs.
  • Bitcoin is coming off a strong downtrend, indicating that there may be some downside momentum left once bears are finished taking a break.
  • Price is testing the bottom of the triangle consolidation pattern right now so a quick bounce to the top might be possible.

Bitcoin price could test the top of the triangle, which might hold as resistance since it coincides with the 100 SMA and is coming off a strong downtrend.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. This suggests that the $390-400 area might keep gains in check, pushing bitcoin price back to the bottom of the triangle at $370-375.

Stochastic is on its way up, after just making it out of the oversold region. This indicates that bullish pressure is present and that buyers could attempt to push past the triangle resistance. If so, price could test the 200 SMA dynamic inflection point at $410 next.

RSI is on the move down but appears to be treading sideways at the

Read more ... source: TheBitcoinNews

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