Bitcoin Price Key Highlights
- Bitcoin price is consolidating inside a rising wedge and is nearing the peak of the pattern.
- Price could break out of the formation anytime soon, signaling which direction a longer-term move might go.
- Technical indicators are giving mixed signals in terms of bullish or bearish presence.
Bitcoin price is consolidating inside a rising wedge formation as it awaits directional clues for a longer-term move.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. These are also near the wedge support to add to its strength as a floor.
However, RSI seems to be heading lower to indicate that selling pressure is returning, even though the oscillator didn’t reach overbought levels on its latest climb. Stochastic is also turning lower without hitting overbought territory to signal that sellers are eager to return.
Bitcoin regained ground late last week when the SEC announced their plans to review their decision to reject several bitcoin ETF applications. In their notice, they cited potential price manipulation and fraud in cryptocurrency markets as reason to reject the proposed rule changes but might still be open for more comments.
This could also keep hopes up for the next set of bitcoin ETF application decision due later next month. Any indication that the regulator might be ready to approve these proposals would bring strong gains for bitcoin and its peers in anticipation of stronger liquidity and even more securities tied to the market.
Of course any major changes in market sentiment could also lead to big swings, especially as volatility is expected to return after the US Labor Day holiday.
Author: Sarah Jenn