The BTC markets are currently testing two major trendlines comprising a major symmetrical triangle. As of this writing, bitcoin appears to be following a major ascending trendline that dates back to mid-2017, whilst simultaneously testing a descending trendline that runs from December’s all-time high of nearly $20,000 USD to the local high of approximately $10,000. Many traders are expecting that the resolution of the triangle will determine the direction of the next significant move in the BTC markets.
Consolidatory Range Tightens for BTC
In recent months, the BTC markets have consolidated in an increasing tightening range between approximately $6,000 and $10,000. After last month’s local high of nearly $10,000, the markets have formed a large lopsided symmetrical triangle pattern.
As of this writing, price action appears poised to break either above or below the symmetrical triangle formation, with the current price of roughly $7,700 brushing up against both the ascending trendline that dates back to July 2017’s prices of approximately $1,800, and the descending trendline running from the all-time high of nearly $20,000 to May’s local high of roughly $10,000.
Break Out or Break Down?
For traders, the BTC markets are producing frustratingly mixed signals, with the steadily declining trade volume witnessed in recent weeks likely indicating an increasing number of market participants opting to sit on the sidelines and wait for confirmation of bitcoin’s next major move.
When looking at the stochastic RSI, bitcoin is producing conflicting signals across different time-frames. Shorter time-frames, such as the 1-day, 12-hour, 6-hour, and 4-hour, suggest that the BTC markets may be over-bought, with the stochastic RSI sitting above the 80-threshold…