Bitcoin (BTC) Price Analysis: Ready for a Triangle Break?
Bitcoin has formed higher lows and found resistance at the $6,800 level to create an ascending triangle formation. Price is currently testing the resistance and an upside break could set off a longer-term rally.
The chart pattern spans $5,800 to $6,800 or the same height as the inverse head and shoulders previously highlighted. This means that an upside breakout could lead to a climb of the same height or $1,000.
The 100 SMA has crossed above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, this means that resistance is more likely to break than to hold. The moving averages could hold as dynamic inflection points near the triangle bottom also.
However, RSI has already made its way to the overbought region to signal exhaustion among buyers. Stochastic is also in overbought territory and could be due to turn lower soon. Once that happens, bearish pressure could still return and lead to a dip for bitcoin.
Reports that BlackRock is looking to invest in cryptocurrencies and blockchain lifted bitcoin at the start of this week. This allowed price to recover back to levels prior to when well-known economists like Roubini and Rogoff slammed bitcoin anonymity and volatility.
According to CEO Larry Fink, BlackRock has assembled a working group to look at blockchain technology and cryptocurrencies such as bitcoin. Note that this company is the world’s largest asset manager as it managed $6.3 trillion in assets as of June 30. However, Fink also clarified that he doesn’t see massive investor demand for crypto.
This also follows a report from Fortune that Cohen Private Ventures, hedge fund billionaire Steve Cohen’s venture arm, invested in cryptocurrency-focused investment fund Autonomous Partners. This renews investor confidence in the industry as big financial institutions are shifting to a more friendly stance to bitcoin and its peers, overshadowing earlier security concerns.