- Bitcoin price recently moved past the top of its long-term triangle to signal an uptrend in the works.
- Price is also trending higher inside an ascending channel and is currently testing an area of interest.
- Sustained bullish momentum could take it to the nearby upside target around the $7,000 handle.
Bitcoin could set its sights higher as it gains more traction on its bullish triangle breakout, aiming for $7,000 next.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the ongoing climb is more likely to resume than to reverse. The 100 SMA also recently held as dynamic support on the latest dip as well.
However, stochastic looks ready to turn south after coming close to overbought levels. This could mean that buyers are exhausted and that sellers might be eager to return and push price back down. A pullback to the broken triangle top or even the bottom of the channel around $6,600 could be seen. A larger dip could take bitcoin price back to the triangle bottom around $6,400.
RSI is also pointing down to show that sellers are ready to return. However, if bulls keep fighting, price could bust through this current area of interest and make its way to the channel top at $7,000. This would also confirm a bullish breakout, likely yielding gains of the same height as the chart pattern in the longer-run.
Price is encountering some headwinds after Coinfloor CEO Obi Nwosu announced that they would be cutting staff levels:
“Coinfloor is currently undergoing a business restructure to focus on our competitive advantages in the marketplace and to best serve our clients. As part of this restructure, we are making some staff changes and redundancies.”
Furthermore, he acknowledged that they’re seeing a change in trade volumes and their business adjustment is being seen as a dimmer outlook.