Bitcoin Price Analysis: Breakout Looming But Which Way Will it Go?
Since the breakout mentioned in my previous Bitcoin analysis, price levels have continued upwards and is now trading in a decision point range. We will know if the recent bullish breakout is sustainable within the next few days.
Bitcoin 30-Minute Chart
On the 30 minute chart for XBT/USD, we can see the recent breakout of the asymmetrical triangle highlighted by a circle at the breakout point. Since then, RSI has created ascending support that has broken to the downside, and alongside this there also appears to be descending volume. This all leads me to believe the breakout is unsustainable and price levels will likely revisit POC (Point of Control) at $9,480 in the short-term.
Market price action is trading within a decision point range between $9,860 and $10,120. Depending on which way the price action takes here will determine which direction we will likely see it continue – meaning if bears pull price action below the trading range, further downside is likely to come.
Adversely, if bulls break above the decision point range with clear rising volume it’s likely to price levels will progress further upwards.
Bitcoin 4-Hour Chart
On the 4 hour XBT/USD chart we can see POC remains at the same levels as on the 30 Minute, meaning that either there was a lot of buying power at the floor of the asymmetrical triangle before the breakout, or that the recent breakout is running low on petrol. Typically, if low volume occurs on a breakout whilst POC remains below the breakout point, the POC will act as a magnet pulling price action towards it.
RSI remains high on the 4 hour chart with more room to progress higher as the RSI has not breached the overbought levels of 80.00 or higher. Both the 15 MA and 50 EMA are about to cross over each other as they progress through the overhead resistance of the previous triangle. Moving averages crossing over each other in a bullish fashion in conjunction with a trading pattern breakout typically is a strong sign of a new trend forming.
There’s a mixture of bearish and bullish indications from today’s analysis on Bitcoin. Whichever direction price action goes in comparison to the decision point range will provide is with further clarification as to which indications I’ve picked up from analysing Bitcoin will come to fruition.
Do you think BTC will rise above $11,000 throughout August? Please leave your thoughts in the comments below!
Nothing in this article is to be construed as financial advice.
Images via Shutterstock, XBT/USD charts by Tradingview