Bitcoin Price Key Highlights
- Bitcoin price is still trending inside an ascending channel pattern and has bounced off support.
- Price is approaching another potential resistance level at its symmetrical triangle pattern.
- A move past this ceiling could lead to a sharper climb for bitcoin to the mid-channel area of interest or the very top.
Bitcoin price is regaining ground after testing the rising channel support but has several upside barriers to contend with.
Technical Indicators Signals
The 100 SMA is crossing above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the rally is more likely to continue than to reverse. Price has also moved above these dynamic inflection points as an early indication of strengthening bullish momentum.
However, bitcoin price needs to clear the next roadblock at the $7000 major psychological level, which happens to be the top of its symmetrical triangle before continuing its move north. From there price could test the mid-channel area of interest around $7250 before making it to the top of the channel around $7600-7700.
Note that the triangle spans $6500 to $7800 so the resulting rally could be of the same height. Similarly, a break below support at $6800 could lead to a selloff of the same size.
Stochastic is pointing up to signal that buyers still have some energy left in them. RSI is also moving higher so bitcoin price might follow suit. Both oscillators are approaching overbought levels, though, so buying pressure could fade soon.
Bitcoin price appears to be drawing some support from geopolitical risks while traders remain hesitant to put money on the dollar or on higher-yielding assets. This phenomenon has been observed before, right around the time the Greek debt crisis was still in play.
Besides, traders are expected to flock back to the dollar once the tax deadline is over as this was seen as the primary reason for the cryptocurrency’s slide earlier in the week. Keep in mind that big hedge funds have their eye on cryptocurrencies, so an influx of funds and liquidity could be a big boost for bitcoin price.