Bitcoin Price Eyes Triangle Breakout Above $6.4K

Bitcoin is again trading in a narrowing price range above $6,400, but the lateral trading may soon give way to a rally, according to technical studies.

The price consolidation comes after Monday's big spike to three-week highs above $6,800, which weakened the bearish case put forward by last Thursday's violation of key support.

Should BTC clear these key obstacles, then traders may feel convinced that the cryptocurrency has bottomed out again at the 21-month EMA support and could push prices higher toward long-term falling trendline resistance above $7,000.

The above scenario could play out if the three-day long narrowing price range is breached on the higher side.

Interestingly, the moving averages on the short duration charts are aligned for a potential break above the triangle resistance.

Further, the stacking order of the 50-hour EMA above the 100-hour EMA, above the 200-hour EMA is a classic bullish signal.

It seems safe to say that triangle breakout, if confirmed, could yield a sharp move higher, possibly toward $6,800.

A triangle breakout looks likely and if confirmed, would signal a continuation of the rally from the Oct. 15 low of $6,151 and open the doors to $6,800.

A downside break of the triangle would shift risk in favor of a re-test of the 21-month EMA of $6,123.

Bitcoin image via Shutterstock; charts by Trading View.