Bitcoin Price Key Highlights
- Bitcoin price is testing the bottom of its ascending channel on the 1-hour time frame and technical indicators are suggesting a bounce.
- Applying the Fibonacci extension tool shows how high price could go from here if support holds.
- A break below the $10,000 level, on the other hand, could set off a longer-term drop.
Bitcoin price is testing a key support zone while technical indicators signal a return in bullish momentum, so it’s time to check the next potential upside targets.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. This means that the rally is more likely to resume than to reverse. However, bitcoin price has also moved below the moving averages to suggest a pickup in selling pressure.
Stochastic is still on the move down but is approaching oversold levels. Turning higher could draw buyers back in and allow a climb to the channel resistance near the 76.4% extension and $12,000 level.
The 38.2% extension is located near $11,500 then the 50% extension is at $11,799. The 61.8% extension is at $12,023.60 then the full extension is at $12,748.10. RSI is also in the oversold area to indicate exhaustion among bears and a possible return in bullish pressure.
Market Factors
Bitcoin price remains under pressure from ongoing government crackdowns and the lack of any big catalysts that could allow the longer-term climb to resume. Volume has also been on the low-end as traders remain cautious and wary of future drops.
Meanwhile, the dollar has enjoyed a rally against its peers during the latest trading sessions on expectations of monetary policy tightening across the globe. Apart from shoring up Fed rate hike expectations, this could also keep a lid on business and consumer activity, spurring a bit of risk aversion as well.
The recent hack on Coincheck hasn’t done bitcoin price any favors either. Many analysts have also pointed to bearish continuation signals that suggest that the selloff isn’t over unless significantly positive updates return.