Bitcoin Price Technical Analysis for 03/24/2017 – New Triangle Forming!

Bitcoin Price Key Highlights

• Bitcoin price is forming lower highs and higher lows, creating a symmetrical triangle formation on its 1-hour time frame.
• Price is currently testing support and could be due for a bounce back to resistance at $1075.
• Technical indicators seem to be hinting that further decline are in the cards.

Bitcoin price is back to consolidation mode and is moving inside a new symmetrical triangle pattern. 

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In other words, a move lower could be more likely than a rally, which suggests that a test of the resistance could still keep bitcoin price inside the triangle. In addition, the 200 SMA lines up with the triangle support, adding to its strength as a near-term ceiling.

If selling pressure is strong enough, a downside break of the triangle support could occur. Stochastic is heading south so bitcoin price might follow suit. RSI is somewhere around the middle, reflecting sideways action, but also appears to be pointing slightly lower as well.

A break below support at $1000 could take bitcoin price to the longer-term floor closer to $950. On the other hand, an unlikely break past the resistance could open the door for another strong rally back to the record highs or at least until the $1200 area.

Market Events

Bitcoin price is under heavy selling pressure these days due to the looming hard fork, as analysts worry that a new version of the bitcoin software could invalidate the ones from the older version. However, the issue of scalability needs to be addressed at some point so it could hinge on how the network consensus sides.

Meanwhile, the US dollar is also losing its appeal as the healthcare vote was delayed in Congress. This is seen to be a test of the Trump administration’s resolve, possibly setting the tone for how they could push their agenda in terms of other policy changes such as tax reform, infrastructure spending, and financial deregulation. Some say the vote is rescheduled to later today but the lack of an outcome or a loss for “Trumpcare” could mean dollar losses.

Charts from SimpleFX

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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