Bitcoin is trading inside a symmetrical triangle pattern and has been able to make a strong bounce off the key $10,000 support. This suggests that a move back up to the resistance might be in the works.
The 100 SMA is still above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that a climb is likely to follow from here. However, price is already trading below both moving averages to indicate that selling pressure is picking up and that these might hold as dynamic resistance levels. Also the gap between the indicators is narrowing to signal that a bearish crossover might follow.
RSI is pointing up after recently turning higher from the oversold region to signal that buyers are returning. Stochastic is also pulling up from the oversold region to show that bulls are back in the game, possibly taking bitcoin up to the triangle top around $11,500.
BTC/USD Chart – TradingView
The recent bounce is seen to have spurred from the crash in Argentina’s stock market and local currency, as times of turmoil like these tend to drive traders to alternative assets like crypto. Such was the case a few years back in Greece as citizens had to find a different way to store value and to make transfers.
With that, bitcoin’s viability as an investment and store of value remains intact, especially with traders looking at longer-term market fundamentals. For one, the easing cycle among major central banks is still in play as policymakers weigh in the impact of the trade war between the US and China.
Also, bitcoin is approaching its “halvening” early next year and this would likely result in a big boost in value. The record hash rate might also be a factor in drawing more investors, as well as the pickup in institutional interest.
Images courtesy of TradingView
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