Bitcoin Price Technical Analysis for 23/02/2016 – Bullish Pennant Forming?

Bitcoin Price Key Highlights

  • As mentioned in previous posts, bitcoin price already broke below the top of a long-term symmetrical triangle pattern.
  • Buyers appear hesitant to take price any higher, though, as bitcoin is still consolidating around the triangle resistance.
  • Price pulled back to the broken resistance earlier in the week and a rebound appears to be in sight.

Bitcoin price seems to be forming a bullish continuation pattern following its upside break from a long-term triangle formation.

Technical Indicators Signals

Technical indicators appear to be supporting the idea of further rallies, as the 100 SMA just crossed above the longer-term 200 SMA. This suggests that the path of least resistance is to the upside, although these moving averages are still in the middle of oscillating for now so the range-bound behavior might resume.

Stochastic is pointing up, confirming that buyers are in control of price action. However, the oscillator is already nearing the overbought levels so a return in selling pressure may be imminent. If so, a move back inside the triangle could be seen, with bitcoin aiming for the bottom at $400.

In addition, RSI is on the move down, which means that bearish momentum is in play, keeping bitcoin price from breaking past

Read more ... source: TheBitcoinNews

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