Bitcoin has formed lower highs and higher lows to create a symmetrical triangle pattern on its 4-hour time frame. The price is now down to support and might be due for a break lower.

The 100 SMA crossed 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. If so, bitcoin could fall by around the same height as the chart formation, which spans $9,200 to $13,600. The moving averages are also close to the triangle top to add to its strength as resistance.

RSI is heading lower to indicate that sellers have the upper hand and could stay in control until oversold conditions are met. Stochastic is also pointing down to show that bearish pressure is present, but the oscillator looks ready to turn higher to signal a return in buying momentum.

BTC/USD Chart – TradingView

Traders seem wary of bitcoin futures on the Bakkt platform as those on CME and CBOE were blamed for the crash that took place starting late 2017. However, many also believe that the exchange would bring in more volumes from institutions and also improve trust in the cryptocurrency industry, both of which would be bullish for bitcoin.

The lack of volatility in bitcoin has been discouraging for investors recently as the price has dipped below the $10,000 level yet again. Traders seem to be waiting on more clues to gauge where prices might be headed next, although longer-term bitcoin fundamentals appear bullish.

There is still some focus on the record hash rate that hit all-time highs of over 100 exahashes per second that means more miners are in the network, thereby making the next algorithm adjustment more difficult. Apart from that, anticipation for the halving in early next year could bring in more bullish positioning as well.

Images courtesy of TradingView

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