Bitcoin Price Technical Analysis for 09/07/2016 – Which Way to Break Out?

Bitcoin Price Key Highlights

  • Bitcoin price is still stuck in consolidation, as traders are waiting for bigger market catalysts before deciding which direction to take.
  • Keep in mind that bitcoin just recently made a strong rally, which makes the consolidation pattern a bullish flag.
  • Technical indicators seem to be suggesting that an upside breakout is likely.

Bitcoin price is still moving in tight consolidation, but this appears to be a continuation signal from the previous strong move.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA on this time frame, confirming that the path of least resistance is to the upside. In addition, the gap between the moving averages is still widening, which means that bullish pressure is strengthening.

Bitcoin price is approaching the peak of the consolidation pattern so a breakout is bound to take place sooner or later. A break lower could still find support at the 100 SMA or 200 SMA while an upside breakout could yield a climb of $25-30, which is the same height as the mast of the bullish flag pattern.

Stochastic is heading south so bitcoin price might follow suit. This indicates that bearish momentum is still in play, although buying pressure could return once the oscillator reaches

Read more ... source: NewsBTC USA