Bitcoin Price Analysis: BTC/USD Triangle Breakout Confirmed
- Bitcoin price breakout from the eight-week slumber hits a wall under $9,500.
- BTC /USD path of least resistance is sideways as highlighted by the prevailing technical picture.
Bitcoin markets remained paralyzed for almost eight weeks. With all lifestreams ( volatility ) cut from the main source, the largest cryptocurrency remained motionless until a breakout was confirmed on Tuesday.
Coming from a position of volatility, after falling to a two-year low, BTC /USD sprung up above several resistance zones starting with $9,200. The upward leg continued above $9,230 as well as the key $9,300 level. Buyers had their eyes fixated on $10,400 but the momentum lost steam short of $9,500.
BTCUSD Chart
At the time of writing, Bitcoin is trading at $9,385. Bulls are dealing with an increase in selling pressure. Resistance at the 50-day Simple Moving Average ( SMA ) is proving to be a hard nut to crack.
Technical indicators applied to the chart are gradually changing from the bullish picture in favor of consolidation. The Relative Strength Index ( RSI ), for instance, has settled for a sideways action at 54.98. This follows an impressive upward movement from levels under the average to those close to 60.00.
Similarly, the moving average convergence divergence ( MACD ) hints that consolidation would take precedence to allow buyers to gather strength once more for the impending breakout to $9,800. The indicator is clinging to the midline, emphasizing on the sideways action.
For now, it is clear that that path of least resistance is sideways. However, with a falling tringle pattern already confirmed, the potential for gains above the resistances at $9,800 and $10,000 remains high. Glancing farther up, the ultimate goal in the medium term is $10,400.
BTC/USD Key Intraday Levels
Spot rate: $9,385
Relative change: -8.25
Percentage change: -0.09%
Trend: Bearish bias
Volatility: Expanding
BTC /USD path of least resistance is sideways as highlighted by the prevailing technical picture.
To get the daily price analysis, Follow us on TradingView
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com
Published at Wed, 22 Jul 2020 09:50:57 +0000
Share on Facebook
Share on Twitter
Share on Linkedin
Share on Telegram