Bitcoin Price Key Highlights
- Bitcoin price has formed lower highs and higher lows on its daily time frame, creating a symmetrical triangle pattern.
- Price broke past the triangle resistance and has made a quick pullback before resuming its climb.
- This confirms that bulls are in control of bitcoin price action and are strong enough to push for more gains.
Bitcoin price confirmed a break past a long-term symmetrical triangle formation, signaling that it’s ready to head further north.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In addition, the gap between the two moving averages seems to be sufficiently wide so there’s no chance of a downward crossover happening anytime soon. The 100 SMA is close to the triangle support, adding to its potential strength as a floor in the event of a pullback.
Stochastic is close to the overbought zone, which suggests that buying pressure could fade and that sellers might still take over. However, the oscillator seems to be turning higher again to show that bulls are putting up a strong fight. Meanwhile, RSI is still on the move up to indicate the presence of bullish momentum that could probably take bitcoin price up to the $1300 record highs.
Market watchers are turning their attention to the surprise snap elections in the UK, which is adding more risk aversion to the mix. In the previous weeks, geopolitical risks had been at the front and center of market news and now UK Prime Minister Theresa May has announced the need to elect a leader that can take the economy successfully through Brexit.
This adds to the complexity of the situation in Europe, as France is heading closer to the first round of its presidential elections. Note that Le Pen is not that far behind her rivals so the possibility of Frexit concerns staying in the headlines could also drive traders towards bitcoin.
Charts from SimpleFX
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