Bitcoin price can’t seem to break past the $9000 barrier, which happens to line up with the top of a triangle pattern. On the 4-hour time frame, it can be seen that price is inside a symmetrical triangle formation with the resistance located around $9000-9500.
A bounce off this ceiling could lead to a move back to the bottom around $7000-7500. However, the 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, resistance is more likely to break than to hold.
Also, the moving averages might keep holding as dynamic support even if a bounce off the top occurs. Stochastic is moving up after all, which means that bullish pressure is present.
The triangle spans $6000 to $13,000 so an upside break could last by the same height as the triangle pattern.
Traders appear to be waiting for the next big catalyst as the recent rally seems to have run out of momentum. Industry developments have been mostly positive but the dip in risk-taking might be dampening gains.
Also, dollar demand has remained supported after the FOMC decision even as policymakers seemed to make a bit of a shift. For one, they removed lines on monitoring inflation developments closely and how the US economic outlook has strengthened.
This led to market watchers thinking that the Fed could let inflation move past the 2% target before picking up the tightening pace. But when most market participants realized that this isn’t really a major shift in policy bias, the dollar managed to recoup its intraday losses.
As for bitcoin itself, price popped slightly when it was reported that Goldman Sachs will open a bitcoin trading operation. Through this, the bank will its own money to trade with clients in a variety of contracts linked to bitcoin price.
*The market data is provided by TradingView.