Bitcoin Price Key Highlights
- Bitcoin seems unstoppable in its climb as it sets its sights on the next upside targets.
- Price is on its way to test the dynamic resistance at the 200 SMA inflection point then the $9,000 area of interest.
- Technical indicators on the daily time frame are still reflecting the presence of selling pressure.
Bitcoin price has been on a tear and buyers might have enough energy to push for a test of the next upside barriers.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, there’s still a chance for the longer-term downtrend to resume.
Price has busted through the 100 SMA dynamic resistance, though, so there’s some bullish momentum building up. Bitcoin price is ready to test the 200 SMA dynamic resistance around $8,500 next. This is near a former support turned resistance level at the $9,000 barrier.
A move past this level could lead to a test of the $10,000 major psychological level, where several investors may be looking to book profits. Stronger bullish pressure could take bitcoin price to the next ceiling close to $12,000.
However, RSI is indicating overbought conditions already, which means that buyers are starting to feel exhausted and may let sellers take over. Similarly stochastic has reached overbought levels and may turn lower to signal a return in bearish pressure.
BTCUSD Chart from TradingView
Market Factors
Bitcoin was off to a running start in the quarter before some selling pressure ensued on negative commentary from well-known economists. The rally was reignited when it was confirmed that BlackRock, the world’s largest asset manager, formed a team to look into investment opportunities in cryptocurrencies and blockchain technology.
This has sparked a case of FOMO among retail investors who don’t want to get left behind in the rallies. Traders are also treating regulatory updates more positively and are looking to the SEC decision on the bitcoin ETF as the next major catalyst.