The Bitcoin price has been gradually increasing since it reached a low of $8,910 on June 15. It is currently trading inside a symmetrical triangle, out of which a breakout is expected.
After creating a bullish hammer with significant volume on June 15, the Bitcoin price has created another bullish candlestick, albeit much smaller and with considerably less volume. However, the price is still trading above the 50-day moving average (MA), which is likely to act as support as long as the price is trading above it.
Daily Bitcoin Outlook
It appears that the daily RSI has bounced above 50 and is moving upwards — a bullish sign.
SponsoredAs for its pattern, BTC seems to be trading inside a descending wedge, which is considered a bullish reversal pattern. The resistance line of the wedge is near $9,650, while a breakout from the wedge could take the price all the way to the range of $9,800-$10,000.
At the time of writing, we cannot confidently predict whether the price will break out from this wedge.
Symmetrical Triangle
In the short-term, the Bitcoin price seems to be trading inside a symmetrical triangle. While this is normally considered a neutral pattern, the fact that it is transpiring after an upward move makes a breakout more likely.
Furthermore, the price has found support above the 50-hour MA.
However, the resistance line of the triangle coincides with the 200-hour MA, making it a confluence of resistance levels. A breakout from the triangle that travels the entire height of the pattern would take the price all the way to the descending resistance line at $9,650.
To conclude, the Bitcoin price is likely trading inside a descending wedge and a short-term symmetrical triangle. A breakout from the latter is expected, which could take the price towards the resistance line of the wedge at $9,650
For our previous analysis, click here.
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