Bitcoin Price Key Highlights
- Bitcoin price is trending higher on its 1-hour time frame, moving inside an ascending channel pattern.
- Price just bounced off the resistance and is making its way back towards support.
- Technical indicators are suggesting that the uptrend could carry on, possibly leading to another test of the channel resistance.
Bitcoin price is settling inside a new rising channel on its 1-hour time frame and might be due for a test of support soon.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA for now so the path of least resistance is to the downside. However, the gap between the moving averages is narrowing so an upward crossover could happen. In that case, bullish pressure could return and allow the climb to resume. After all, these moving averages coincide with the channel support around $710-715, adding to its strength as a floor.
Stochastic is making its way out of the oversold area to indicate a return in buying pressure as well. The oscillator has a long way to go before reaching overbought levels so there’s plenty of room for bitcoin price to rise, possibly even going for a break past the channel resistance at $740.
In addition, a bullish divergence can be seen since stochastic made lower lows while price had higher lows since November 8. The channel support lines up with an area of interest above $705, which previously held as resistance.
Market Events
The outcome of the US elections didn’t have much of an impact on bitcoin price volatility as ranges remained intact and no sharp spikes were seen, unlike in other financial markets. There is still a lot of uncertainty associated with new president Donald Trump but traders seem to be giving him the benefit of the doubt for now, which is supporting the US dollar against bitcoin in the process.
Still, investors are expected to scurry back to bitcoin the moment risks arise, particularly when Trump gives another display of his brash rhetoric and flip-flopping economic plans. In this case, traders could seek higher returns on bitcoin than in stock markets.
Charts from SimpleFX
