Think bitcoin and its crypto buddies could make a comeback this year?
Here’s a potential breakout setup you might wanna keep tabs on.
BTC/USD: 4-hour
Bitcoin (BTCUSD) 4-hour Chart by TradingView
Cryptocurrencies have been out of the limelight for some time, following a pretty disappointing run last year.
But will 2023 be kind to bitcoin?
This triangle consolidation pattern visible in the 4-hour time frame might hold some clues, as the direction of the breakout could dictate longer-term price action for BTC/USD.Price is already testing the triangle resistance around $17,500 and a break higher could set off a climb that’s the same size as the formation.
However, technical indicators are pointing to a likely dip back to support near $16,800 or possibly even a triangle breakdown.
Stochastic just reached the overbought zone to signal exhaustion among buyers, so turning lower would confirm that bitcoin bears are back in action.
Also, the 100 SMA is below the 200 SMA to reflect bearish vibes. Then again, BTC/USD has surged above both moving averages as an early indicator of bullish pressure.
Fears of a global recession are still in play this year, which could give fiat currencies a run for their money. After all, some are predicting that monetary easing could restart during the latter part of 2023, causing investors to lose faith in the traditional financial system.
Whether or not the crypto sector can finally benefit from this remains to be seen, but it wouldn’t hurt to stay alert to potential breakouts if they happen!
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