BTCUSD Price Technical Analysis – All Eyes on This Triangle!

BTCUSD Price Technical Analysis - Eyes on This Triangle!

BTCUSD Price Key Highlights

  • BTCUSD price has been stuck in consolidation once more, trading inside a descending triangle pattern with its lower highs on the 1-hour time frame.
  • Price made a quick bounce off the triangle support yesterday and is back to testing the top of the pattern, still unsure whether to make a break for it or not.

BTCUSD price could be due for a breakout in either direction soon, as it is approaching the peak of its descending triangle formation.

Where To Next?

Technical indicators are giving mixed signals on where BTCUSD price might head next, although the path of least resistance is still to the downside because of the following factors:

  • BTCUSD price is just coming off a selloff, which represents an unwinding of the long trades spurred by increased demand after the Russian Ponzi scam.
  • USD strength could prevail since the US central bank is on track towards hiking rates by their December meeting.
  • Cryptocurrency appeal has declined somewhat, following speculations that it might’ve been used as a medium of exchange for terror groups.

BTCUSD Price Technical Analysis - Eyes on This Triangle!

Stochastic is pointing down, suggesting that the triangle resistance around $320 might continue to hold as a ceiling. RSI is also on the move down, which means that bears are taking control and that another test of support around $318 might be in order.

Meanwhile, the average directional index continues to tread sideways so range-bound market conditions could persist. Once this indicator pops above the 50.0 level, a trend could form depending on where price might break out.

A downside break could spur around $30 in losses, which is roughly the same height as the chart formation. Similarly, an upside break could yield about $30 in gains for BTCUSD price.

Intraday support level – $318

Intraday resistance level – $325

Technical Indicators Settings:

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

Charts from Bitstamp, courtesy of TradingView

Previous articleGBPAUD Forex Forecast – Bears Coming Out to Play!
Next articleLTCUSD Price Technical Analysis – Another Consolidation Pattern!
Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.