Bitcoin is still waiting on a symmetrical triangle consolidation breakout but has to also contend with nearby upside and downside barriers outside the formation. After all, price also seems to be moving in a range with resistance at $6,450 and support around $6,350.
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that support is more likely to break than to hold. In that case, Bitcoin could fall by the same height as the chart pattern, which spans $6,050 to $6,650.
Stochastic has some room to climb before reaching overbought levels, but it seems that the oscillator is already topping out and ready to head back down. RSI also has room to climb before reaching the overbought zone so there may be some buying pressure left. If buyers are strong enough, they could push for a break past the triangle and range top, leading to a rally that’s the same size as the chart pattern also.
Traders continue to hold out for bigger market catalysts, although the latest updates are enough to keep Bitcoin mostly supported. Risk aversion has been present in the general financial markets, making it challenging for higher-yielding assets to take flight.
For now, market watchers are keeping tabs on commentary, with the latest one coming from Elon Musk who mocked Bitcoin security with a Twitter reply to someone asking about two-factor authentication on Tesla.
Traders also seem to be taking it easy while the SEC has yet to announce its decision on Bitcoin ETF applications. Still, traders can look forward to the launch of ICE Bakkt Bitcoin futures, although it’s worth noting that CME Bitcoin futures were blamed for the massive slide in prices late last year.