Bitcoin has formed higher lows and lower highs to trade inside a symmetrical triangle on its 4-hour time frame. The price recently bounced off support and is setting its sights on the top around the $11,500 level.
The 100 SMA is above the longer-term 200 SMA for now but looks prime for a bearish crossover. In that case, the price could still make its way back down to support around $10,000. A break below this level could set off a slide that’s the same height as the triangle pattern. However, bitcoin is trading above both moving averages as an early indication of bullish pressure.
RSI is heading up but closing in on the overbought region to indicate that buyers might feel exhausted soon. Turning lower could allow sellers to take over and nearby resistance levels to hold. Stochastic is already in the overbought region to show that bullish momentum is fading and that bearish pressure might pick up from here.
BTC/USD Chart – TradingView
Bitcoin could be in for a new leg higher as Bakkt is finally opening for business after getting approval from the CFTC to launch in late September. This would likely bring an influx of institutional investment in bitcoin, possibly even driving it past the triangle top if volumes surge stronger than expected.
In addition, the support of the New York Stock Exchange is also bullish news, signaling that regulators might be softening their stance and that exchanges are maturing enough to tap into a larger market. This could also set a precedent for other jurisdictions and even other nations.
Keep in mind that bitcoin is also enjoying record hash rates and is looking forward to the “halvening” next year. Slashing the mining rewards in half could potentially double its value, so traders might be positioning early for this event.
Images courtesy of TradingView
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