News & Analysis
Eightcap CFD technical insights: Bitcoin holding in an ascending triangle for now
Bitcoin USD – the 4H chart is currently sitting in a developing ascending triangle pattern. These patterns are normally continuation patterns. If the pattern can continue to hold we’re looking for price to hold around its current position and rally higher to test the pattern high around the 6700 area. Price can also be seen in a corrective phase after the sharp sell-off seen in early September. But on the short-term and while price continues to respect the pattern we could see a short-term rally. The current point price is testing also lines up with short-term support 6525, this level has been a previous high on two occasions, previous highs can have a habit of forming new support points.
A break of 6480 starts to suggest the pattern has failed and a trend continuation lower is developing. So we’re looking for buyers to confirm these levels and show a commitment with a break above 6600 – 6635. Let’s see how the market plays this one out.
Good Trading from Eightcap.
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