Bitcoin Price Technical Analysis – Gearing Up for a Breakout?

Blockchain Media Group

Bitcoin Price Key Highlights

  • Bitcoin price volatility is much lower these days, as traders appear to be taking a break after the strong climb in the past weeks.
  • Price made higher lows and lower highs, consolidating inside a symmetrical triangle pattern on its 1-hour time frame.
  • A breakout could take place anytime soon, as bitcoin price is already approaching the peak of the triangle.

Bitcoin price could be in for yet another strong move, depending on which direction it breaks out. Technical indicators are giving mixed signals, which reflects hesitation among buyers and sellers.

USD Strength in Play

Bitcoin price is supported against its other cryptocurrency rivals but it seems to be having trouble keeping up its climb against the US dollar. After all, the US currency is currently enjoying strong support from increased Fed interest rate hike expectations for December, thanks mostly to the upbeat NFP report released last Friday.

Confirmation that the Fed can increase borrowing costs for the first time in a long while could yield more gains for the US dollar, dragging bitcoin price much lower. On the other hand, a decline in dollar demand could allow the cryptocurrency to make a quick comeback.

bitcoin price, bitcoin trading, bitcoin technical analysisbitcoin price, bitcoin trading, bitcoin technical analysis

An upside break from consolidation could spur a rally to the highs at $400-500 while a downside break could trigger a selloff to the $300 level. Stochastic is on middle ground and barely offering any strong directional clues at the moment.

Meanwhile, RSI appears to be on the move up, which means that bitcoin price could encounter less friction heading north. On the flip side, the 100 SMA just crossed below the 200 SMA, signaling that a longer-term downtrend might be underway.

Intraday support level – $375

Intraday resistance level – $385

Technical indicators settings:

  • 100 SMA and 200 SMA
  • Stochastic (8, 3, 3)
  • RSI (14)

Charts from BitStamp, courtesy of TradingView

mm – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.