Bitcoin is forming lower highs and found support at the $7,735 mark to create a descending triangle pattern. Price has bounced off the resistance and could be due for a move back to the bottom again.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, resistance is more likely to break than to hold. In that case, bitcoin could be in for a rally that’s around the same height as the chart formation, which spans around $1,000 in size.

A break above the $8,300 level could be enough to confirm that an uptrend is in the works, but the price would need to clear the dynamic resistance at both moving averages.

RSI is turning up to show that buyers are taking control, even without hitting the oversold region just yet. Stochastic is on the move down to show that sellers have the upper hand and could push for more declines.

BTC/USD Chart – TradingView

Bitcoin is struggling to make headway these days as it suffered a sharp drop after the lackluster reception to the Bakkt futures launch. Volumes have also been weaker over the past week as traders are holding out for bigger market catalysts.

It doesn’t help that risk appetite appears to be improving in the general financial markets, drawing traders slowly back to traditional higher-yielding assets like stocks and commodities. Still, it has been reported that bitcoin use has picked up in Hong Kong as the protests are leading citizens to seek alternative assets as a store of value and investment. This kind of phenomenon has been observed in the likes of Greece, Argentina, and Venezuela when economic crisis hit.

Looking ahead, it would take a significant catalyst to push bitcoin in a particular direction from here, but long-term fundamentals remain bullish as traders have their sights set on the halving next year.

Images courtesy of TradingView

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