XBT/USD Analysis: Bitcoin Forming A Rising Triangle – Is $7,200 The Bottom

Bitcoin
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XBT/USD Analysis: Bitcoin Forming A Rising Triangle – Is $7,200 The Bottom

  • Bitcoin shallow recovery steps above $8,300 but bullish action remains limited.
  • Bitcoin price remains lethargic and mundane between the 100 SMA resistance and 100 EMA support.

It is clear that Bitcoin is yet to find a bottom that will set in a trajectory towards $10,000. The trend in the last couple of weeks has been up and down with Bitcoin staying lower at the downside than the upside. For instance, the short-lived breakout above $8,800 last week gravely endangered the support at $8,100 and $8,000.

Moreover, the weekend action was mundane and largely inclined in the sideways direction. Intriguingly, Bitcoin has been able to keep above the short-term ascending trendline as seen on the four-hour chart.

The upside is capped under $8,400 while Bitcoin is pivotal at $8,300. Also limiting movement north is the 100 Exponential Moving Average (EMA) on the 4-hour chart. On the downside, the 100 Moving Average (MA) is in line to offer support above the trendline.

BTC/USD four-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview

Bitcoin bulls have a task to defend the 100 MA support and push for gains above the 100 EMA resistance. The action above the EMA and the resistance at $8,400 are likely to pave the way for gains towards the triangle resistance at $8,800. In my opinion, the triangle breakout target is at $10,000. However, in case declines progress under $8,000, $7,200 will the next viable support (possible bottom).

In the meantime, the current trend is slightly bullish especially with the Relative Strength Index (RSI) making a comeback to the upside. The increasing volume coupled with the RSI cross above the average could signal for more bullish action towards $8,800.

XBT/USD Key Technical Levels

Spot rate: $8,318

Relative change:

Support: $7,800

Resistance: $8,800

Trend: Bearish short-term

Volatility: High

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XBT/USD Analysis: Bitcoin Forming A Rising Triangle – Is $7,200 The Bottom
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XBT/USD Analysis: Bitcoin Forming A Rising Triangle – Is $7,200 The Bottom
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Bitcoin shallow recovery steps above $8,300 but bullish action remains limited. Bitcoin price remains lethargic and mundane between the 100 SMA resistance and 100 EMA support.
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Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 284 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Follow John @