Bitcoin has formed higher lows and lower highs inside a symmetrical triangle on its 1-hour chart while bulls and bears still battle it out. Price is hovering close to the top of the triangle to hint that bulls are pushing harder, but resistance remains stubborn.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that resistance is more likely to break than to hold. Then again, the moving averages could simply be oscillating to reflect range-bound conditions. For now, the 200 SMA appears to be holding as dynamic support.
Stochastic is on the move up but is near the overbought region to signal that buyers might feel exhausted soon. Turning lower could mean a return in selling pressure and a possible test or break of the $6,250 support. A move below this could spur a drop that’s the same height as the chart pattern, which spans $6,300 to around $6,800.
RSI is slowly crawling higher to reflect the presence of bullish pressure but also seems to be cruising sideways to signal further consolidation. Bitcoin has a bit of room to go before reaching the peak of the triangle anyway.
Bitcoin has had a positive run in the previous week thanks to a handful of positive developments, but traders are hoping to get more updates in order to sustain the climb with more long positions. There is still some uncertainty related to the SEC decision on Bitcoin ETF applications since the regulator simply opted to extend the comment period.
The attention could now shift to the launch of bitcoin futures on ICE Bakkt, although it’s also worth remembering that CME bitcoin futures were blamed for the drop in bitcoin price late last year owing to a buildup of short positioning.
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