Bitcoin Price Technical Analysis for 10/07/2016 – Small Triangle Pattern

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Bitcoin Price Key Highlights

  • Bitcoin price has formed lower highs and found support around $607.50, creating a descending triangle visible on its short-term time frames.
  • Price seems to have gotten rejected at the resistance and is on its way towards testing support once more.
  • Technical indicators are suggesting that a bounce off the area of interest could be seen.

Bitcoin price is moving inside a tiny triangle consolidation pattern but may be due for a breakout sooner or later.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA, which suggests that the path of least resistance is to the upside. For now, the 100 SMA has held as short-term dynamic resistance, and the narrowing gap between the moving averages suggests that a downward crossover might be imminent. If so, sellers could take control of bitcoin price action.

Stochastic is crawling down, also indicating that bearish momentum is in play. With that, bitcoin price could break below the $607.50 support area and head towards the next support at $601.50. Note that the triangle pattern spans $607.50 to $615 so any resulting breakout could last by the same amount.

Bitcoin Price Technical Analysis for 10/07/2016 - Small Triangle Pattern

Read more ... source: TheBitcoinNews

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