Bitcoin (BTC) Price Analysis: Waiting for a Triangle Breakout

Bitcoin is still hovering above its long-term support near the $6,000 mark and has consolidated inside a short-term symmetrical triangle. A break below the bottom of the triangle could lead to an actual test of the key support area while a break higher could signal that bulls are returning.

The 100 SMA is below the longer-term 200 SMA on this time frame to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Also, the 100 SMA appears to be holding as dynamic resistance since it lines up with the top of the triangle.

The gap between the moving averages is also widening to signal strengthening selling pressure. RSI is pointing up to show that there’s some bullish pressure left, but the oscillator is nearing overbought levels to reflect exhaustion. Similarly stochastic is heading higher so bitcoin might follow suit but is also…