Bitcoin is still stuck in its long-term consolidation pattern as volatility has been fading over the past few days. The price might also be forming an inverse head and shoulders pattern, but has yet to test the neckline.
A move past the triangle top around $10,200 could take bitcoin to the reversal formation’s neckline resistance at $10,900-11,000. A break above this could set off a climb that’s around the same height as either the triangle, which spans $9,200 to $13,000, or the inverse head and shoulders that spans $9,600 to $10,900.
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, there’s a chance for bullish momentum to pick up from here. However, the moving averages seem to be holding as dynamic resistance at the moment, so there may be some bearish pressure present.
RSI is on the move down to suggest that sellers still have the upper hand, but the oscillator is on middle ground to reflect consolidation. Stochastic recently pulled up from the oversold region but is turning back down to indicate that sellers are putting up a fight, possibly dragging bitcoin back to the triangle support.
BTC/USD Chart – TradingView
Bitcoin closed lower for yet another day on the lack of major catalysts and possibly some unease ahead of the launch of the Bakkt futures. Recall that bitcoin futures launched by the CME and CBOE in late 2017 were blamed for the crash then, so there may be some liquidation ahead of the September 23 Bakkt launch date.
Besides, traders appear to be moving some of their funds to other altcoins that are performing better so far this week. The likes of XRP and ethereum have been on a tear, likely attracting more short-term inflows while leaving bitcoin in a holding pattern.
Images courtesy of TradingView
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