2018-10-18 06:59 |
Bitcoin recently formed a flag consolidation pattern after its sharp rally and fade from the triangle top. This is often seen as a bullish continuation signal, with an upside break possibly leading to a climb that’s the same height as the flag’s mast.
The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, resistance is more likely to break than to hold. If that happens, price could be in for a longer-term rally that’s roughly the same height as the descending triangle pattern.
However, stochastic is already dipping into the overbought region to reflect exhaustion among buyers. Turning lower could bring a return in selling pressure which might drag bitcoin back to the bottom of its triangle. RSI is starting to move higher after previously treading sideways, also reflecting a pickup in bullish pressure.
Many are hopeful that this upside break could be enough to sustain a rebound in bitcoin until the end of the year. After all, the gains are supported by fundamental factors, particularly the launch of Fidelity’s institutional platform for bitcoin and ethereum.
This would enable large funds to put money in the space, likely driving up demand and volumes then lifting prices. Retail investors could join in for fear of missing out any big moves, and analysts are also pointing out how this price pattern was seen back in 2014 before price skyrocketed over the next couple of years.
Risk sentiment in the financial markets has flipped back and forth, which is making the situation a tad more complicated for investors, but it appears that another round of positive updates could be enough to give the breakout a stronger kick. Still, there is some uncertainty when it comes to regulatory action, particularly the SEC’s decision on bitcoin ETF applications which many are still waiting for.
The post Bitcoin (BTC) Price Analysis: Bullish Continuation Breakout! appeared first on Ethereum World News.
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