Bitcoin price has started the day moving higher with a 1.75% move briefly entertaining $5300. Let’s dive into the charts to see if the bulls can maintain the momentum to take us higher.
Bitcoin Price Trend Points to $5,900
Looking at the 4-hour chart, we can see that bitcoin price is steadily climbing higher since the memorable move to breach $5k last week.
The range for the week thus far, has been quite tight, with lows of $5130 and highs of $5320. Wednesday has seen BTC/USD maintain the range equilibrium and sustained $5200, all while occurring within an ascending triangle pattern.
The upside target of this triangle, as unbelievable as it would sound only a couple of weeks ago, would be almost $5900.
Looking at the technical indicators, the bullish cross on the stochastic RSI from oversold territory implies that there is room to the upside. As we have seen this in critical recent times, it has preceded the more significant moves higher over the past couple of weeks.
There is, however, bearish divergence on the MACD and the RSI, where the indicators are trending lower while price is trending higher. This normally implies that there is a weakening move. However, at face value, the price action suggests that the bulls want to take BTC higher.
Could BTC follow LTC?
As we know, Bitcoin has generally lagged behind the other altcoins in taking a move higher and although it took its time, it did ultimately follow.
Looking at where bitcoin price currently is and how it is performing, there is unquestionable similarities between how it broke form its lows and pressed higher.
So would it be that unreasonable for Bitcoin to do the same? Well we know that there is a lot of people who want to buy the dip back in the low $4000s and mid $3500s. There are also still a few people who anticipate bitcoin price fall below $3000 to $2000 if not lower.
People Waiting on Cheaper Bitcoin is Bullish
It may just be that what we have witnessed is simply excess demand over supply, which is what actually led to the breakout in the first place. Clearly there will be a corrective phase at some point, but with so much desire to buy lower, it is not beyond the realms of possibility that BTC price could go higher.
Seriously why is no one talking about this gox news?
— steve (@btcfeen) April 10, 2019
One catalyst could be the news of the Mt Gox coins, which were at risk of being released back to the market some time this summer, is now likely to be postponed. This may kick the risk can down the road for many more months, if not years.
With the price of bitcoin moving towards the end of the consolidating triangle, we should know in the next 24-48 hours as to what BTC/USD will do next.
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The views and opinions of the writer should not be misconstrued as financial advice. For disclosure, the writer holds Bitcoin at the time of writing.
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