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Bitcoin has formed lower highs and lower lows to create a symmetrical triangle pattern over its 4-hour time frame. The price has been tested recently and has rebounded to the top of the triangle, perhaps to try another interruption.
The 100 SMA is above the longer-term SMA 200 to confirm that the path of least resistance is on the upside. In other words, resistance is more likely to break rather than resistance. If this happens, bitcoin could rise the same height as the triangle formation, which ranges from $ 3200 to $ 4,400.
However, RSI is already pointing to overbought conditions or that buyers feel exhausted. Turning lower could signal a return with bearish pressure when sellers regain control, probably bringing the bitcoin back to the bottom of the triangle. A break below this could trigger a decline in the same size as the triangle, although the near 200 SMA could add support to $ 3,800.
Stochastic is pointing to the top to signal that there is some bullish pressure, but the oscillator is approaching the overbought region to indicate that buyers may soon feel exhausted.
Bitcoin this year has had a positive start and seems to be making a strong attempt to withdraw from the first slide. The optimism for a big rebound in the coming years could still drive the rallies, but it is encouraging to see the bulls able to defend the support levels well enough.
It may require industry development more than simply expectations to sustain a climb, but a break up of a key technical level could encourage even more bulls to be loaded. In fact, analysts predict that if the bitcoin is able to keep the head above the psychological mark of $ 4000 for the rest of the day, it may be enough to encourage bullish positioning in the days ahead.
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