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Bitcoin is still stuck in consolidation for another day, but the bulls are hoping that the price has been able to keep the head above $ 4,100. Furthermore, another attempt to overcome short-term resistance appears in progress.
Recall that bitcoin has created a head and shoulder inversion in its 4 hour time interval and this is a classic reversal signal. A break above the $ 4,400 neckline may be sufficient to confirm that a long-term climb is taking place, which could last at the same height as the chart's formation.
At the same time, the price is consolidating inside a slightly symmetrical triangular formation, whose breakout could also provide clues as to where the price might be next. Note that the triangle extends over $ 3,200 to about $ 4,500, so the resulting move could be of the same height.
RSI is turning lower to signal that sellers are regaining control and may stay on top of the game for a while longer because it has a lot of ground to cover before hitting oversold levels. The Stochastic is coming down from the overbought zone, so there is plenty of room for further declines.
However, the 100 SMA is above the 200 longer-term SMA to indicate that the path of least resistance is downward. In other words, the support is more likely to break than the resistance could also be broken. In addition, moving averages align with the triangle at the bottom to add to its strength as a support.
So far the bitcoin is going quite well, although there is still some degree of caution among market participants. The support levels are strongly defended by the bulls and the lower lows signal an increase in pressure, but traders also seem ready to reserve profits at key resistance levels. For now, markets may be waiting to see a catalyst capable of sustaining long-term gains.
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