Bitcoin Price Key Highlights
- Bitcoin price recently broke to the upside of its consolidation visible on the 1-hour time frame.
- This could be indicative of further gains in the cards, although oscillators suggest a slowdown in bullish momentum.
- The strong upside break is being attributed to the looming SEC deadline for some bitcoin ETFs on August 23.
Bitcoin price made a sharp upside break from its short-term consolidation to signal that further rallies are in the cards.
Technical Indicators Signals
The 100 SMA recently crossed above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This means that the rally is more likely to gain traction than to retreat from here. Price also moved past the moving averages’ dynamic inflection points that could continue to hold as support.
The consolidation spans $5,800 to around $6,600 so the resulting climb could be at least $800 tall. RSI is already indicating overbought conditions, though, so buyers taking a break could invite sellers to take over. Stochastic has some room to rise before hitting overbought levels but is nearing the area, too.
A quick pullback to the broken range resistance could ensue and more buyers could join in at this level to push bitcoin price past the $6,800 swing high. However, a stronger return in selling pressure could allow the consolidation to resume.
The recent pop higher is being attributed to anticipation over the SEC decision on a number of bitcoin ETF applications due August 23. This batch from ProShares was submitted back in December, so the regulator could no longer extend the deadline for their ruling unlike they did so for VanEck/SolidX.
Of course denying these applications could send jitters across the industry once more, leading many to expect that their next ruling due towards the end of September could have the same result.
Author: Sarah Jenn