Bitcoin Price Analysis: Can BTC/USD Retain Bullish Momentum?
Bitcoin price remained elevated against the US dollar, but the main question here is whether the BTC/USD pair can retain the bullish bias or not in the near term.
There is a contracting triangle pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD, which may ignite the next move.
Bitcoin Price Break
The BTC to USD made an attempt to move above the last swing high of $640, but there were continuous offers presented, which stopped the upside move. As a result, the price remained in a range, and there was hardly and major move.
The best part is that the $625 support is intact, which is a positive sign. Moreover, the price is also above the 100 hourly simple moving average. However, the 100 hourly SMA is slowing moving higher, and closing in towards the current price, which is a sign that the price needs to do something soon.
On the downside, the 23.6% Fib retracement level of the last wave from the $614 low to $640 high is intact and acting as a support area. As mentioned, there is a contracting triangle pattern formed on the hourly chart (data feed via Bitstamp) of BTC/USD.
It may play a major role for the next move in the near term. As we can see from the chart, there were many attempts to break the triangle resistance area, but the bulls failed to make a sustained move higher. However, the triangle is now shrinking, and about to break soon.
On the upside, a break above triangle resistance may call for a move above the last swing high of $640. The hourly RSI is currently below the 50 level, which is discouraging for the BTC bulls in the short term.
Chart Source – TradingView.com and data feed by Bitstamp