Bitcoin continues to move sideways inside its symmetrical triangle visible on the 4-hour chart. Price appears to have bounced off support again to form a higher low, indicating that bulls are slowly gaining traction.
The 100 SMA dynamic inflection point also kept gains in check, and this shorter-term moving average is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, support is more likely to hold than to break or resistance is more likely to break than to hold.
The gap between the moving averages is widening to reflect increasing bullish momentum, also supporting the idea of an upside break. If that pushes through, bitcoin could climb by the same height as the triangle pattern, which spans $3,200 to $4,400.
RSI is still on its way down, though, so there’s some selling pressure in play. This could keep price hovering around the triangle support until bullish momentum returns after seeing oversold conditions. Similarly stochastic is heading south to indicate that selling pressure is present and could stay on until oversold levels are reached. Both oscillators have a bit of ground to cover before this happens.
News that Hong Kong billionaire Li Ka-shing is backing bitcoin has provided some support for the coin this week, keeping traders hopeful that more big players could keep price afloat. In particular, Li has onvested in the upcoming Bakkt platform through his venture capital firm Horizon Ventures.
Bakkt has raised $182.5 million in its series A funding round last week and continues development with New York Stock Exchange owner Intercontinental Exchange. It also has partnerships with the likes of Microsoft and Starbucks, supporting the narrative that institutional money could contribute to most of the industry’s rise this year.