Bitcoin is still trading inside its symmetrical triangle and is currently testing support at the $10,100 area. Another bounce off this level could form a small double bottom and spur a climb to the resistance at $11,500 next.
On the other hand, a break below support could set off a slide that’s around the same height as the triangle, which spans $9,200 to $13,500. Similarly, a break past the resistance could spur a climb of the same size.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, support is more likely to break than to hold. The price is also trading below both moving averages to signal the presence of selling pressure.
RSI is still turning higher to signal the presence of bullish momentum, and the oscillator has room to climb before indicating overbought conditions. Stochastic is also turning higher after recently dipping into the oversold region, so the price could follow suit as it moves north.
BTC/USD Chart – TradingView
Traders seem to have been frustrated waiting for bitcoin to make new highs past the area of interest around $11,000 that the lack of momentum spurred profit-taking. Still, support at the triangle bottom keeps holding as bulls are waiting to buy on dips.
Fundamental factors support more bitcoin price gains, though, as the record hash rate and approaching “halvening” could mean sustained gains. Also, the Bakkt launch planned for September could usher in stronger institutional inflows, which would likely drive volumes and prices higher.
Apart from that, the overall easing bias among global central banks could keep traders wary of fiat currencies and traditional assets, keeping demand for alternative holdings like cryptocurrencies supported. Of course, the subject of stricter regulation might still derail any strong rallies from here.
Images courtesy of TradingView
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