Bitcoin has been stuck inside its symmetrical triangle consolidation for quite some time now, but bulls seem to be getting the upper hand. Price is already closing above the triangle top to signal that a longer-term climb is underway.
In addition, the 100 SMA crossed above the longer-term 200 SMA to confirm that bullish momentum is picking up. This could be enough to sustain a climb that lasts the same height as the chart pattern, which spans $6,000 to $8,400. These moving averages also line up with the broken triangle top and the support, adding to its strength as a floor in another dip.
Stochastic is also turning higher without even hitting oversold levels, indicating that buyers are eager to return. RSI has been cruising sideways to reflect consolidation but is also pointing back up to signal that bullish momentum is about to pick up.
Bitcoin might find some resistance around the $7,000 to $7,400 levels which are around the earlier pop higher. From there, price could find a ceiling at the triangle highs around $8,400 next.
More and more analysts are calling a bottom on bitcoin prices, thereby fueling the bullish pressure that’s keeping support levels holding. Note that fundamental factors are also in support of more bitcoin gains, with retail and institutional money expected to flow in and spur a big rebound before the end of the year.
Still, there’s some degree of caution as market watchers keep an eye out for the SEC decision on bitcoin ETF applications. Approval could provide more upside momentum as it would be a point in favor of friendly regulation while rejection could mean another big dip in prices.
Nonetheless, ICE Bakkt bitcoin futures could add volatility and volumes, although it’s also worth noting that the launch of CME bitcoin futures last year was blamed for the sharp drop in late December.