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A Bitcoin Breakout could Carry BTC to a Crucial Resistance Level

2 mins
Updated by Kyle Baird
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In Brief

  • The Bitcoin price is possibly trading inside a descending wedge.
  • The price has found support above the 50-day MA and the daily RSI has bounced at 50.
  • Bitcoin is trading inside a short-term symmetrical triangle.
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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. As 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.
Bitcoin Ascending Wedge
Bitcoin Chart By Tradingview

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.
Bitocin Symmetrical Triangle
Bitcoin Chart By Tradingview
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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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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