Bitcoin edging at a pattern break. Will the trend continue?
Welcome to Thursday’s update. Today’s focus is on Bitcoin as we continue to watch price as it pushes at a new breakout.
Buyers returned to the crypto markets after US CPI came in below expected, taking pressure off the inflation outlook. Bitcoin jumped after the release consolidating a recovery rally that started late in the European session. Bitcoin reversed a 3.10% decline to finish 3.23% higher.
Price tested but failed to break the current price pattern, which is seen as an ascending triangle pattern. These patterns in an uptrend are normally seen as continuation patterns, but they require a higher breakout to confirm the pattern.
Today price has continued to trade higher after yesterday’s positive session, and so far, we have seen price trading above the pattern. This could be seen as a breakout attempt, but we still need to see a higher close to start confirming the move. A failed rally and slip back inside the pattern would be seen as a worry.
We hope to see buyers hold the move or close at new August highs to signal that a breakout is underway. A breakout would also give us confidence that trend is set to continue, and we may see a new test of the downtrend point if buying can continue.
What are your thoughts, traders? Do you think that we are seeing a continuation pattern breakout?
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