A breakout has still not occurred in Bitcoin as the triangle pattern approaches its end. On the logarithmic scale chart, price action has actually managed to break out of the pattern and close above, but this also happened earlier in the year and preceded a sharp decline. Many analysts are using this scale and are anticipating the downward trendline of the triangle turning from resistance to support and preceding bullish price action.
On the standard price scale, we are still trading within the triangle pattern. Price action is currently trading at $6600 and would need to drop from here to stay within the triangle pattern. Price continues to consolidate. Volatility forms a new 2018 low as measured by the average true range (ATR). ATR is currently around 187. It has been forming new 2018 lows almost every day now for two weeks. RSI is around 50 showing equal pressure from buyers and sellers. Volume is below the 20-period average daily volume and price action appears to be experiencing some resistance at the 50-EMA.
Over the past 24 hours, the main movement occurred when the price dropped from around $6670 to an intraday low of $6515, a move of over 2%. The movement was on significant volume but also bounced on considerable volume making moves back to $6600. Price action seems to be experiencing some short-term resistance at the 200 EMA.
- Price has broken out of the triangle pattern on the logarithmic scale but remains inside the triangle on the regular price scale
- Price will need to drop to stay in the triangle pattern which has been forming since January
- Volatility has been recording 2018 lows almost every day for the past two weeks
- Daily RSI trading around 50 showing equal pressure from buyers and sellers
- Resistance at the daily 50 EMA and the hourly 200 EMA
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