BTCUSD Price Technical Analysis – Descending Triangle Forming

BTCUSD Price Technical Analysis - Descending Triangle Forming

BTCUSD Price Key Highlights

  • BTCUSD price is undergoing weaker volatility these days, calming down from the previous strong rallies.
  • Price is starting to consolidate inside a descending triangle formation, as it formed lower highs and found support around $300.

BTCUSD price is currently testing the triangle resistance and could be due for a move back to the bottom if bears jump into action.

100 SMA Resistance

The top of the descending triangle is near the 100 SMA, which has served as a dynamic inflection point in the past. It is somewhere around the $340 area at this point, which might serve as the line in the sand for any short-term rallies. A break above that area could signal that another uptrend is in order.

The 100 SMA is below the 200 SMA, indicating that the path of least resistance is to the downside. If selling pressure is strong enough, BTCUSD price might even make an attempt to break below the $300 support level and make its way down to new lows.

Stochastic is pointing up, though, which means that buyers have a shot at allowing the climb to resume. RSI is on middle ground, barely providing any strong directional clues at the moment.

BTCUSD price has formed higher lows since the middle of the week, hinting that buyers are pushing higher and refusing to give up too easily. This could be another point in favor of an upside triangle breakout, potentially taking price up to the next psychological resistance at $400 then at $500. On the other hand, a downside break of support could lead to a move down to the $250-280 levels.

Intraday support level – $325

Intraday resistance level – $340

Technical Indicators Settings:

  • 100 SMA and 200 SMA
  • Stochastic (8, 3, 3)
  • RSI (14)

Charts from BitStamp, courtesy of TradingView