Do you follow the crypto market?
Check out this tight consolidation pattern forming on the short-term chart of bitcoin!
Which way do you think it’ll break out?
Bitcoin (BTC/USD): 1-hour
Bitcoin (BTC/USD) 1-hour Chart
Brace yourselves for a big bitcoin breakout!
BTC/USD has formed lower highs and higher lows inside a symmetrical triangle on its hourly time frame, and it looks like price could bust out pretty soon.
Moving averages are hinting at a bullish breakout since the 100 SMA is attempting to cross above the 200 SMA.
If bitcoin fans jump back in the game and take price past the $19,200 area, we might just see a rally that’s at least the same height as the triangle formation!On the other hand, if the ceiling holds, bitcoin could slump back to the bottom of the triangle at around $19,000 and even go for a breakdown.
After all, Stochastic is already inching closer to the overbought region to reflect exhaustion among buyers. Heading back down would confirm that bitcoin bears are ready to return.
Still, bitcoin price action could take cues from overall market sentiment. As it is, Fed rate hike expectations and risk-off flows are driving the safe-haven dollar higher across the board.
Not sure which direction to take? You might wanna consider a straddle setup, but don’t forget to consider the average BTC/USD volatility when setting entries and exits!
New to cryptocurrencies? Check out our recently launched School of Crypto that introduces beginners to the crypto market!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.