Bitcoin Price Key Highlights
- Bitcoin price has formed higher lows and slightly higher highs to create a rising wedge on its 1-hour chart.
- Price is bouncing off resistance and might be due for another test of support.
- Bitcoin price is also nearing the peak of the formation so a breakout might happen soon.
Bitcoin price might be gearing up for a break from its rising wedge pattern, but technical indicators are giving mixed signals.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, an upside break might be more likely to happen than a break below support.
If so, bitcoin price could be in for a steeper uptrend, possibly one that’s the same height as the wedge formation that spans $6,100 to $6,900. The 100 SMA also lines up with the bottom of the wedge to add to its strength as a floor.
However, RSI looks ready to turn lower as it nears overbought levels. This suggests that bullish momentum could fade soon as buyers start to feel exhausted, likely allowing sellers to take over. Stochastic already seems to be on its way down to signal that bearish pressure is starting to come into play.
BTCUSD Chart from TradingView
Market Factors
Bitcoin price took a hit earlier in the week on news of Bithumb’s hack, but it looks like it’s dealing with the news pretty well. This follows an earlier hack on a smaller South Korean exchange wherein lesser-known altcoins were affected.
Cryptocurrencies still seem to be hopeful that the SEC could avoid regulating these as securities, particularly after a senior official said so last week. The speculation that Tether was used to manipulate bitcoin price also seems to have been debunked, which gives investors fresh hope that the probe being conducted by US regulators would produce more or less the same results. In that case, confidence in the industry’s security could be restored.