Bulls Rejoice as Ascending Triangle Support Holds

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Bitcoin price analysis shows that BTC has managed to find safety at $7,600 while the crypto market recovers from a $14 billion pullback. Can bulls hold on to this critical support, or will the market continue to unravel? Let’s take a look.

Bitcoin Price Analysis: Daily Chart

On the 1-Day BTC/USD chart we can see that Bitcoin price 00 has returned on to the ascending triangle support at $7,600, as we predicted it would in yesterday’s analysis.

If bullish traders are able to defend this level until the daily close, then we will have a strong confirmation that the asset is still tracking inside the ascending triangle pattern.

From there, we should expect to see the price to springboard back towards the $8,200 resistance above as it continues to play out. This could potentially happen as early as next week, given the increasing volume of trading that is taking place in the Bitcoin market right now.

Looking at the daily momentum indicators, we can see that the MACD is looking worryingly bearish with a divergence between the 12 and 26 MAs, along with increasing selling volume on the histogram.

The RSI is also showing a minor trend deviation away from the current price action. Over the last 5 days, the RSI has printed two consecutive lower lows while BTC has made a higher high along the uptrending support.

While this isn’t a major contradiction, it shows that the current uptrend is perhaps not as strong as many would like.

All eyes will be on the $7,600 support today, to see if bitcoin is still in with a chance of retesting the $8,200 above and breaking towards the $9,000 mark. If the support fails, then it’s quite possible that we may see the asset plunge below $7,000 again.

30-Minute Chart

Looking at the current price of bitcoin in closer detail over a 30-minute time frame, we can see that there are actually some bullish signals, which suggest bullish traders are already beginning to launch an upside recovery.

On the RSI, we can actually see that there is a bullish deviation away from the current price trend (yellow arrows), since Bitcoin’s price recovered from the overbought region on May 23. Furthermore, we can also see that the MACD is looking favourably bullish too, with buying volume increasing on the histogram and the 12-MA spiking up towards the signal line.

At the moment however, bullish traders have run into some difficulty with a sloping resistance (white dashed line) which is preventing the price from breaking over $7,650. This new downtrending channel will be adding extra pressure on BTC buyers, while they attempt to keep Bitcoin in touch above the ascending triangle support.

An exit above this resistance will give us an early indication that BTC has started its recovery, and is likely to push on and test its next major resistance at $7,700.

Source: Bulls Rejoice as Ascending Triangle Support Holds