- Bitcoin price continued to stay elevated and the bulls managed to break a contracting triangle pattern highlighted in yesterday’s post.
- The lower trend line of the contracting triangle pattern (data feed from Bitstamp) is currently acting as a support trend line.
- The price is also finding bids near the 100 hourly simple moving average, which is around the highlighted trend line and support area.
Bitcoin price remained in a positive territory, but the number attempts to break a support trend line is a concern for the bulls.
Bitcoin Price – Trend Line Support
Bitcoin price managed to stay on the bullish zone, but the price action was choppy as it mostly traded in a small range. Yesterday’s highlighted contracting triangle pattern on the hourly chart (data feed from Bitstamp) was broken towards the upside to clear the path for more gains. However, the upside was limited and there was no real movement towards $425.
The price on the other hand moved down, but the lower trend line of the contracting triangle pattern provided support and stalled losses. The best part happened was the price closing above the 100 hourly simple moving average. However, the upside was stalled near the 61.8% Fib retracement level of the last drop from the $422 high to $406 low.
Overall, the next move depends on the highlighted trend line support area and the 100 hourly simple moving average. A break below it may call for a change in the trend to bearish that could take the price back towards the $405 level.
Looking at the technical indicators:
Hourly MACD – The hourly MACD is heading towards the bearish area, calling for a downside break.
RSI (Relative Strength Index) – The hourly RSI is just above the 50 level, which is a positive sign for the bulls.
Intraday Support Level – $412
Intraday Resistance Level – $418
Charts from Bitstamp; hosted by Trading View