Bitcoin price enjoyed gains yesterday as the cryptocurrency benefited from the uptick in risk appetite. Equities recouped some of their losses as crude oil price found bids. By the end of the New York session, BTCUSD was up by 4.13% at $7,136.84. Can it hold on to its gains today?
$7,400.00 Is Holding on BTCUSD
On the daily time frame, it can be seen that bitcoin price is still hovering around the $7,400.00 psychological handle. This price also coincides with the 50% Fib level when you draw the Fibonacci retracement tool from the high of February 13 to the low of March 13.
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Symmetrical Triangle is Getting Narrower; Time to Brace for a Breakout?
A closer look at the 4-hour time frame shows that BTCUSD has been making lower highs and higher lows. Connecting them would allow for a symmetrical triangle chart pattern to materialize. This is widely considered as a neutral indicator until the market breaks out. With that said, a bullish close above the high of April 18 at $7,308.00 would effectively be an upside break. This could suggest that there may be enough buyers to push BTCUSD to its April 7 highs at $7,467.38. If resistance at that price does not hold, the next ceiling could be at $8,024.00 where the 100 SMA and 200 SMA are on the daily time frame.
Conversely, a close below the low of April 20 at $6,748.72 could mean that sellers are dominating. Should this happen, support at the bottom of the triangle will have already been invalidated. The next floor could then be at $5,481.85 where the cryptocurrency bottomed on March 29.
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