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  • Bitcoin breaks the descending triangle formation after consolidating.
  • Today BTC/USD trades 2.7% higher as cryptocurrency sentiment improves.

 

After hitting a low of 7,701.00 on the Coinbase exchange price has now consolidated and moved higher.

There was a descending triangle formation which has now broken to the upside and the next possible target could be the resistance at 8,677.92.

If the price is  to break back down again the support level at the base of the pattern at 7,701.00 is key.

Looking at the relative strength index (RSI) there is a clear bullish divergence forming.  

One thing that does concern me is the possible failure swing (hidden divergence) whereby the indicator makes it to overbought and the price wave makes a lower low.  

Overall, this still looks like a base consolidation period and price would need to break 8,677.92 to confirm a bullish scenario.Bitcoin analysis