Bitcoin spiked above the top of its triangle consolidation to signal that bulls are gaining ground.
Bitcoin spiked past the resistance of its symmetrical triangle formation, but price has fallen back below the top just as quickly. This signals hesitation among buyers or a brief pullback to gather more bullish momentum.
The 100 SMA is slightly above the longer-term 200 SMA to suggest that the path of least resistance is to the upside or that the move higher might be sustained. However, these indicators might not yet be conclusive since the moving averages are oscillating to signal consolidation action.
Bitcoin (BTC) Price Today – BTC / USD
Price has also retreated back below moving averages to indicate that selling pressure remains present. In that case, bitcoin could still fall to the bottom of the triangle at $6,200 to test support. Stochastic is also heading south to suggest that bearish momentum is in play and might even be enough to spur a break of support. RSI, on the other hand, is heading north to signal the presence of bullish pressure and possibly further gains.
Do These Indicators Suggest a Bitcoin Price Rally Early in 2019?
- Bitcoin has ignored the bearish implications of the descending triangle in the past, so there is merit in considering a bullish resolution.
- Beginning in 2012, prices dropped below the 200-DMA (including 2018) twice. The prior bear market lasted 1.2 years, leaving some to speculate a possible ending in sight for the current retracement in price from the all-time-highs seen late last year.
- A weekly close below the triangle would likely provide confirmation to bearish continuation and set the stage for a prolonged bear market.
- Only finding acceptance above the 200 DMA and the descending triangle would revive bullish market settings
Last Dip Ever
After a month-long lay off, well recognized technical analyst and cryptocurrency trader AngeloBTC, who possess hundreds of thousands of followers on social media platforms, stated that BTC experienced its last dip ever, alluding to the fact that the weekly chart of BTC is demonstrating a clear bottom-like trend.
Last dip ever. pic.twitter.com/IiJ1AoR2UB
— Angelo฿TC (@AngeloBTC) October 15, 2018