Bitcoin appears to have broken past its symmetrical triangle top but is still hovering close to the resistance. This reflects some hesitation among buyers before taking price further north, possibly signaling that the break was a fake out as well.

In that case, Bitcoin could slump back inside the chart pattern to resume its consolidation. Then again the price is already close to the peak of its formation so a breakout is due soon. The 100 SMA is below the longer-term 200 SMA, though, so the path of least resistance might still be to the downside. In other words, a break below the triangle support might be more likely to happen.

If so, Bitcoin could slide by around $2,500 or the same height as the triangle pattern. The price would need to break below its short-term ascending channel for that to happen, though. Stochastic is reflecting the presence of bullish pressure as it moves north but is closing in on the overbought zone to signal exhaustion. RSI appears to be treading slightly lower to signal that bears have the upper hand.

BTC/USD Chart - TradingView

Bitcoin has had a good number of factors propping it up over the past week, including news that Google will be reversing its ban on Bitcoin and ICO ads this month. While the search engine will only be accepting ads from regulated entities targeting audiences in the US and Japan, it could still bring a strong revival in general market interest. Apart from that, it also represents a thumbs-up in terms of regulation in those countries as their ban was originally aimed at protecting consumers.

Fundstrat analyst Tom Lee still expects a strong rebound before the year closes, citing factors coming up in early 2019 as a reason for long positions to build up. These two factors are strengthening the infrastructure of the cryptocurrency exchange market and FOMO of institutional investors.

Images courtesy of TradingView

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