Bitcoin Chart Hints at Bullish Trends, But Resistance Looms
Bitcoin has seen a significant surge in value over the past two months, rising by more than 40% between June 30 and August 27. However, after peaking at $81,442.02 on Coinbase, Bitcoin pulled back and is now trading below that level.
The chart for Bitcoin against the US dollar shows two bullish patterns: a falling-wedge pattern of reversal, which validated the breakout in August, and a giant double-bottom pattern, also a sign of reversal.
However, there's a problem with the double-bottom pattern - its pivot point is at around $81,700, close to where Bitcoin hit resistance in late August. If Bitcoin fails to take and hold that pivot, the breakout could end.
Despite this, other technical indicators are showing positive signs for Bitcoin. The Relative Strength Index (RSI) has peaked and entered an overbought state, but the Moving Average Convergence Divergence indicator (MACD) is bullish, indicating a short-term bullish signal for Bitcoin.