- Bitcoin breakout lingers as falling triangle pattern nears maturity.
- The short-term analysis shows Bitcoin price bearish inclination likely to take center stage.
Bitcoin has lost its mojo over the last few days. Unlike other cryptoassets such as Ethereum and Ripple which are making headway above key resistance zones, Bitcoin is beating down on support areas.
The daily chart still shows a lagging sideways trading trend inside a falling triangle pattern. Some analysts shun from trading when the price is within a triangle as short-term volatility is usually difficult to predict. However, used alongside other technical indicator descending triangles can be used to predict breakout points.
For now, XBT/USD is trading at $10,232 while the upside is limited by the 100 Moving Average (MA) on the daily chart at $10,534. Despite the lower correction after testing $10,400 key support, Bitcoin is still holding ground above the main trendline. As long as the price stays above this support line, Bitcoin has the potential to form a higher low pattern likely to culminate in a breakout that could touch $10,900.
XBT/USD daily chart
The short-term analysis, on the other hand, shows XBT/USD with a strong bearish bias. The Stochastic RSI, for instance, is heading yet to break the downtrend after the rejection from the overbought in the first week of September. Further exploration into the oversold is expected before Bitcoin witnesses a significant reversal.
On the brighter side, the moving average convergence divergence (MACD) is currently a higher level compared to the beginning of September. The horizontal movement at the mean line (0.000) shows the likely hood for XBT/USD to remain unchanged and ranging in the coming sessions. This also explains to almost equal liquidations of both long and short positions on BitMEX, the leading derivatives trading platform in the market.
XBT/USD Technical Levels
Spot rate: $10,235
Support Areas: $10,200, $10,000 $9,800
Resistance: $10,400, $10,600 and $10,900
MACD: Ranging and suggesting sideways trading