Bitcoin (BTC) Price Watch: Ready for a Long-Term Breakout?
Bitcoin Price Key Highlights
- Bitcoin is now at the very end of its long-term triangle consolidation pattern, so a breakout could happen anytime soon.
- Price is currently testing the resistance around $6,600 and a long green candle closing above this could be enough to signal further gains.
- Technical indicators are giving mixed signals on the possible direction of a breakout.
Bitcoin price could be ready to break out of its daily symmetrical triangle pattern, setting the longer-term direction.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA on the daily time frame to signal that the path of least resistance is to the downside. In other words, support is more likely to break than to hold, possibly sending bitcoin price lower by the same height as the chart formation.
The 100 SMA is also in line with the top of the triangle to add to its strength as resistance. A break past this level could lead to a test of the 200 SMA dynamic support next, then a climb that’s around the same size as the triangle, which spans $6,000 to around $10,000.
Stochastic is also heading south so bitcoin price might follow suit, aiming for around $4,000 in losses. RSI, on the other hand, is moving sideways on middle ground to reflect range-bound conditions.
There have been a few developments positive for cryptocurrencies these days, including the reversal of Google’s ban on cryptocurrencies, the addition of more crypto options on Coinbase, and Bitmain’s IPO.
Positive remarks from CFTC’s Giancarlo on how cryptocurrencies are here to stay also helped ease regulatory jitters. He cited:
“I personally think that cryptocurrencies are here to stay. I think there is a future for them.”
This was also supported by Twitter CEO Dorsey who suggested that cryptocurrencies could solve problems for countries that are still seeking functioning fiat currencies.