Bitcoin has formed lower highs and higher lows to create a symmetrical triangle on its 1-hour time frame. The price has made a strong bounce off support and is currently testing the resistance at the $10,300 mark.
Bears returned at this point and might be strong enough to push the price to the triangle support at the $10,100 levels. 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, possibly sending price lower by the same height as the chart formation.
RSI recently hit the overbought zone to reflect exhaustion among buyers and is turning lower to show that sellers are starting to take over. Stochastic has some room to climb before reaching the overbought zone but is already crossing lower to show that sellers might be eager to return. For now, though, the price seems to be finding support at the 200 SMA dynamic inflection point as it trades above both moving averages.
BTC/USD Chart – TradingView
Bitcoin got a strong boost when risk aversion surged and dollar demand fell on China’s retaliatory measures against US tariffs, keeping trade war jitters in place. This could keep a lid on gains for higher-yielding assets like stocks and commodities, driving traders towards alternative holdings like bitcoin and other cryptocurrencies. Keep in mind that fiat currencies are also on the back foot as central banks are on their easing cycles to keep their respective economies supported.
If times of market crisis were any indication, it’s that bitcoin tends to benefit from risk-off flows as market players seek an alternative safe-haven or store of value. Reports that bitcoin dominance may actually be understated also gave the coin a boost as analysts at Arcane Research believe BTC dominance is actually more than 90%.
Images courtesy of TradingView
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