Bitcoin has formed lower highs and found support at the $7,800 area, creating a descending triangle on its 1-hour time frame. Resistance seems to be holding, so a move back to support could follow from here.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the top is more likely to hold than to break. However, the price is also finding support at the moving averages’ dynamic inflection points and the gap between the indicators is narrowing to reflect a bit of bullish pressure.

A break above the triangle top around $8,300 could set off a climb that’s around the same height as the chart formation, which spans $7,800 to around $8,700 or $1,000. RSI seems to be on the move down and has a bit of room to cover before indicating oversold conditions. Stochastic has already turned up and could keep moving north, so bitcoin price might follow suit.

BTC/USD Chart – TradingView

Traders seem to be holding out for the SEC decision on the bitcoin ETF, something that has kept the cryptocurrency on edge in the past few years. The Securities and Exchange Commission has set an Oct. 13 deadline for approving a bitcoin-based exchange-traded fund from Bitwise Investments, and the agency might no longer postpone its decision this time.

Hougan, former CEO of Inside ETFs, told CNBC’s “ETF Edge”:

“The evolution of the bitcoin market over the last two years is from night to day,” he said Monday, adding that some of the SEC’s chief concerns about approving a bitcoin ETF — mainly custody and proper regulation — are starting to get resolved.

“Two years ago, there were no regulated, insured custodians in the bitcoin market. Today, … there are big names like Fidelity and CoinBase [with] hundreds of millions of dollars of insurance from firms like Lloyd’s of London,”

Images courtesy of TradingView

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