Bitcoin price is currently consolidating in a short-term symmetrical triangle, and the breakout could determine direction.
An upside break could move all the way up to the next upside barrier around $9,000 while a downside move could hit $7,000.
Technical indicators are giving mixed signals, but there is evidence of bullish momentum picking up.
Bitcoin price is stuck in consolidation, and the breakout could hit these next upside or downside barriers marked.
Technical Indicators Signals
The 100 SMA is safely above the longer-term 200 SMA on this time frame, which means that the path of least resistance is still to the upside. This basically means that the uptrend is more likely to resume than to reverse. The gap between the moving averages is also gradually widening to signal stronger bullish momentum.
However, stochastic appears to be turning lower without even hitting overbought levels. This indicates that bears are eager to return and push bitcoin price back down. A break below the triangle support could be followed by a decline to the area of interest around the $7,000 mark. This is also around the moving averages’ dynamic inflection points.
RSI is cruising at the middle of its range to reflect current consolidation conditions. Turning higher could bring buyers in and lead to an upside break of the triangle at $8,300. This could then be followed by a rally to the next area of interest around $9,000.
BTCUSD Chart from TradingView
Market Factors
Bitcoin price is holding out for the next set of catalysts, although the previous week did have a few good updates. Investors appear to be pausing due to the SEC decision on bitcoin ETF applications, shelving some for a later date while denying the one from the Winklevoss twins again.
News on stronger institutional interest could be a strong positive catalyst this week while any updates concerning security breaches on exchanges could force a drop. Overall sentiment and reaction to US top-tier events, along with other central bank announcements this week, could also push bitcoin price around.