Bitcoin Is Trying to Break a Bullish Triangle
Bitcoin has moved sideways for most of December as it consolidated its October and November gains. But now the chart could point to further upside.
The main pattern at work is the bullish ascending triangle that began with the Thanksgiving pullback. BTCUSD proceeded to make a higher low one week ago. It then successfully tested that low with a false breakdown on December 11, followed by a steady climb as buyers piled in. Now it seems to be breaking that triangle.
A few other patterns jump out from the four-hour chart. First, notice how prices moved back above $19,000 and held for the last three days.
Next, MACD has been rising.
Finally, Bollinger Band Width squeezed back to the bottom of its range before this morning’s breakout to new highs. BTCUSD has seen volatility squeezes before extended moves previously.
Don’t forget today’s Federal Reserve meeting will likely keep a steady drum beat of dovish news and low interest rates. That’s normally helped weak-dollar assets like gold. But now that BTCUSD has gained acceptance, it could be the new beneficiary of easy-money policy.
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The main pattern at work is the bullish ascending triangle that began with the Thanksgiving pullback. BTCUSD proceeded to make a higher low one week ago. It then successfully tested that low with a false breakdown on December 11, followed by a steady climb as buyers piled in. Now it seems to be breaking that triangle.
A few other patterns jump out from the four-hour chart. First, notice how prices moved back above $19,000 and held for the last three days.
Next, MACD has been rising.
Finally, Bollinger Band Width squeezed back to the bottom of its range before this morning’s breakout to new highs. BTCUSD has seen volatility squeezes before extended moves previously.
Don’t forget today’s Federal Reserve meeting will likely keep a steady drum beat of dovish news and low interest rates. That’s normally helped weak-dollar assets like gold. But now that BTCUSD has gained acceptance, it could be the new beneficiary of easy-money policy.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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