Technical Analysis – BTCUSD descending triangle breakout could be nearing

Christina Parthenidou, XM Investment Research Desk

BTCUSD (Bitcoin) has been gradually making lower highs since June’s spike to the 1½-year high of 13,809, what now looks to be a descending triangle with a support line around 9,250.

The technical indicators are currently favoring a bearish picture for the short-term, as the RSI is maintaining a downward slope under its 50 neutral mark and the MACD seems to be gaining negative momentum below its red signal line.

The base around 9,250 could reject downside corrections but if not, with the price closing under 9,000 too, the sell-off could extend towards the 7,650-7,400 area.

In case the support line holds and the price rebounds, the upper line of the triangle currently seen near 10,050 could retake control. Should the bulls beat that wall too, attention will turn to the previous high of 10,879 and then to the 11,400 barrier.

Summarizing, downside pressure may hold in the famous digital coin in the short-term according to the technical picture, but only a breakout of the descending triangle (either to the upside or downside) could determine the market’s direction.