Bitcoin Price Key Highlights
- Bitcoin price is trending higher inside an ascending channel on the 4-hour chart and is testing the top.
- A pullback to support might be due from here, so as to gather more bullish energy on the climb.
- The uptrend is likely to resume since the 100 SMA is completing a crossover above the 200 SMA.
Bitcoin price hit resistance at the top of the channel but might be ready to resume the climb on a test of support.
Technical Indicators Signals
The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that the uptrend is more likely to resume than to reverse or that support is more likely to hold than to break.
However, RSI is pointing down to indicate that sellers are trying to regain control from here while buyers take a break. Similarly stochastic is moving south so bitcoin price might follow suit while bearish pressure is in play.
Price could bounce upon hitting support at the Fib levels or the channel bottom, which lines up with the 61.8% level in particular. This also coincides with a former resistance around $7,000, which might also hold as an area of interest.
A larger pullback could last until the swing low just above the moving averages, which might be the line in the sand for any bullish correction.
Bitcoin price does seem to remain support, especially after landing back above the $7,000 major psychological mark that many are watching. Optimism for approval by the SEC in bitcoin ETF applications appears to be keeping bulls present for fear of missing out on a big rally.
Apart from that, many analysts are renewing their bullish calls on this particular cryptocurrency, with Tom Lee even citing that the launch of ethereum futures might wind up positive for bitcoin.
Author: Sarah Jenn