Bitcoin is still stuck inside its long-term symmetrical triangle pattern, but there seem to be signs that bulls are putting up a fight. The price has formed higher lows and higher highs recently to create a small bullish channel.
Price just bounced off the short-term channel bottom around $10,200 and is setting its sights back on the top around $10,700. However, the mid-channel area of interest is holding, so another move to support might follow.
The moving averages are also currently holding as dynamic resistance. It seems that the indicators are still oscillating to signal consolidation, though, barely providing strong directional clues at the moment. If the price is able to make it past the mid-channel area of interest and the channel top, it might also count as a break above the long-term triangle resistance.
RSI is turning lower without even hitting the overbought zone, though, so a return in selling pressure might follow. Similarly stochastic is on the move down to confirm that bears are in control, possibly leading to a break below the channel support and a test of the $10,000 major psychological mark. A move below this could send bitcoin back to the bottom of the triangle at $9,600.
BTC/USD Chart – TradingView
Volatility has been subdued for bitcoin these days as traders might be waiting to see how the upcoming central bank events turn out. Note that the FOMC, BOJ, and SNB are all due to make their monetary policy decisions this week, and further easing could be enough to draw traders away from fiat currencies and onto alternative holdings like crypto.
Apart from that, traders might also be on edge with the Bakkt bitcoin futures launch, given how the contracts from CBOE and CME were previously blamed for the flash crash by the end of 2017. Still, many are now turning their attention to the rise in Google searches for “bitcoin” as this has been positively correlated to prices in the past.
Images courtesy of TradingView
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