Bitcoin Price Analysis: Contracting Triangle on 1H

Bitcoin prices have been in a contracting range since the high of $9,015 formed in Friday’s European trading hours.

Hourly chart

Typically, the price breaks out in the same direction as the trend that was in place just prior to the triangle forming. 

If prices do overcome the triangle resistance, look for a test of the $9,100 handle, which is currently housing the 200DMA. 

The triangle support currently rests at $8,811 – a break below that threshold may bring a deeper drop to the rising trendline support seen at $8,667. 

From a trading standpoint, a downside break of the triangle would be a good spot to reduce positional long trades and another (potential) rejection near. $9,000 would be a good time to raise short exposure.