Bitcoin Price Analysis: Buyers Defending Long-Term BTC/USD Triangle Bottom

Bitcoin Price Analysis: Buyers Defending Long-Term BTC/USD Triangle Bottom 13

Bitcoin formed lower highs and slightly higher lows to create a triangle pattern on its daily time frame. Price is close to the triangle support and might be due for a breakout soon as it approaches the peak of the formation.

The 100 SMA is above the longer-term 200 SMA for now so the path of least resistance could be to the upside. However, the gap is narrowing to signal a potential downward crossover that could draw more sellers in. In that case, a downside break from the $6000 support area could signal a pickup in bearish momentum.

Stochastic is pulling up from oversold conditions to show that buyers are ready to take action while RSI seems to be crawling higher as well. A move past $7000 to $8000 could be enough to confirm an upside breakout, but bitcoin has to push past the dynamic inflection points around $10,000 as well.

Bitcoin Price Analysis: Buyers Defending Long-Term BTC/USD Triangle Bottom 14

Bitcoin was weighed down by increasing regulation and bans on cryptocurrency ads late last month, but the mood has been lifted by news of big hedge funds investing in the industry. Price found trouble sustaining a bounce as traders rushed to liquidate positions as the tax deadline approaches this month.

However, the cryptocurrency could resume trading on positive sentiment once April 17 is over, assuming of course that the tide hasn’t turned by then. The return in risk-taking from cooling trade tensions between the US and China could also prove positive for bitcoin.

As for the dollar itself, the upbeat PPI readings have provided some support leading up to the actual CPI release. The FOMC minutes will also be printed and could give guidance on future rate hike action, which might also be crucial in setting longer-term direction for the US currency. Hawkish commentary could revive dollar rallies while hints of caution could dampen tightening hopes.

*The market data is provided by TradingView.