Bitcoin was previously consolidating inside a small symmetrical triangle formation then made an upside break. This allowed it to gain further traction on its larger triangle bounce and set its sights back on the longer-term resistance.

On the 4-hour chart, it can be seen that bitcoin is inside a descending triangle pattern with the top around $9,000-10,000 levels. This lines up with an area of interest where plenty of limit orders might be located.


However, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This suggests that bears are very much present, although its also worth noting that bitcoin is trying to surge past the 200 SMA dynamic inflection point. If this is completed, an upward crossover could soon follow.

Stochastic is pointing up to signal that thereís some buying pressure left, but the oscillator is nearing overbought territory. Turning back down could draw sellers in and lead to another test of the triangle support around $6030-6050.

RSI already looks prime for a move lower from the overbought region so bitcoin might follow suit.



Improving investor sentiment on cooling geopolitical tensions is seen to be one of the main factors spurring the sharp rally in bitcoin price. Apart from that, the end of tax filing for many might have also allowed traders to reopen their positions. Looking at past price action reveals that Q2 has historically been a positive period for bitcoin price.

Another factor propping the cryptocurrency higher is the news that big investing families are making preparations to have a stake in the industry. After it was reported that Soros Fund Management secured internal approval to invest in virtual currencies, news agencies also revealed that families like Rothschild and Rockefeller are also prepping to place bets.