Bitcoin Price Key Highlights
- Bitcoin price is still inside its short-term ascending channel but is on its way to test support.
- If the near-term floor holds, the Fibonacci extension tool on this pullback shows the potential upside targets.
- Technical indicators are suggesting that the rally could carry on from here.
Bitcoin price looks prime for a bounce off its short-term channel bottom and might recover to the Fib extension levels.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA on this time frame to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse or that support is more likely to hold than to break.
In addition, the 100 SMA is currently holding as dynamic support while the 200 SMA is near the channel bottom to add an extra layer of defense for bulls. RSI is indicating oversold conditions and looks ready to pull up, so bitcoin price might follow suit.
Stochastic is still on the move down to indicate that there’s some selling pressure left. However, the oscillator is already approaching oversold levels to signal exhaustion among bears. Turning higher could show that bullish pressure is returning.
The 50% extension is close to the mid-channel area of interest at $6,800 and might be the first upside target. Stronger bullish momentum could take bitcoin price up to the 61.8% extension at $6,842 or the 78.6% extension at the channel top or $6,900. The full extension is at $6,991.90 or near the $7,000 major psychological barrier.
There were a few negative remarks from American economists Joseph Stiglitz, Kenneth Rogoff, and Nouriel Roubini citing that bitcoin will fail as governments increase regulatory efforts. These may be to blame for the recent slide in bitcoin price, erasing part of the previous week’s rallies.
This is nothing new to the cryptocurrency, though, and it might just take a string of positive updates to revive the climb. Besides, bitcoin and its peers were off to a good start for the quarter so investor optimism is evident.