Bitcoin (BTC) Price Watch: Can Bulls Defend the Triangle Bottom?

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Bitcoin Price Key Highlights

  • Bitcoin is still inside its descending triangle visible on the daily chart.
  • Price is testing support and is approaching the peak of the formation to signal an imminent breakout.
  • Technical indicators appear to be favoring a downside move and a selloff.

Bitcoin is testing the bottom of its descending triangle on the daily chart and could be due for a breakout soon.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, a downside break is more likely to occur than an upside break.

In that case, bitcoin price could tumble to the next potential support zones at $4,000 then $2,000. On the other hand, an upside break could still find resistance at the moving averages but the rally could potentially last by the same height as the chart pattern.

RSI is heading lower to signal that sellers have the upper hand. However, this oscillator is dipping into oversold territory to signal a slowdown in selling pressure. Turning back up could bring buyers in again.

Stochastic is also moving south and has more room to fall before hitting oversold levels. This suggests that bears could stay in control of bitcoin price for much longer.

BTCUSD Chart from TradingView

Market Factors

Bitcoin price encountered another wave of selling pressure when it was reported that a small South Korean exchange was hacked. Coinrail tweeted over the weekend about the breach and reported that only lesser-known altcoins like Pundi X were affected. Still, investors couldn’t help but revisit security concerns in the overall industry.

Meanwhile, the dollar is facing the upcoming FOMC decision during which a rate hike would likely be announced. More hawkish remarks could boost the dollar further against bitcoin while cautious comments on future tightening could dampen gains.

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