- Bitcoin price after trading below $400 levels managed to recover a few points and traded higher.
- The price is currently trading in a tiny range, and forming a breakout pattern.
- There is a contracting triangle forming on the hourly chart (data feed from Bitstamp), which may act as a catalyst for the next move.
Bitcoin price is currently consolidating and it looks like the bulls are waiting for the right time to step in the short term.
Bitcoin Price – Buy with a break?
Bitcoin price after recently traded higher towards $415, but there was no real momentum. The price is currently consolidating in a tiny range, as it looks like both sellers and buyers are waiting for a catalyst for the next move.
There is a contracting triangle forming on the hourly chart (data feed from Bitstamp), which may provide a reason to traders to catch the next move. The price is currently trading above the 50% Fib retracement level of the last leg down from the $402 low to $414 high. Moreover, the triangle support area is also positioned near the stated fib level.
So, there is a high probability of the price heading higher. If there is a break above the triangle resistance area, then there can be a move towards the $420 level. The price may even head towards $425 in that situation. On the other hand, a break below the triangle support area could take the price towards the 100 hourly simple moving average, which is positioned near the 61.8% Fib retracement level of the last leg down from the $402 low to $414 high.
Looking at the technical indicators:
Hourly MACD – The hourly MACD is almost flat, pointing towards a consolidation phase.
RSI (Relative Strength Index) – The hourly RSI is below the 50 level, which is a bearish sign.
Intraday Support Level – $408
Intraday Resistance Level – $412
Charts from Bitstamp; hosted by Trading View