Bitcoin has formed higher lows and higher highs to trade inside a rising wedge pattern on its 4-hour chart. Price is testing the resistance after breaking past a small triangle consolidation to signal a pickup in bullish pressure.
The 100 SMA also completed a bullish crossover from the 200 SMA to confirm that the path of least resistance is to the upside or that resistance is more likely to break than to hold. However, RSI is turning lower after recently hitting overbought levels to signal a possible dip. In this case, support is still more likely to hold than to break.
Stochastic was also on the move down but has turned back up halfway through to reflect a return in bullish pressure. A candle closing past the $7,500 level could confirm a bullish break and an uptrend that’s the same height as the wedge, which is around $1,500 tall.
Bitcoin drew more support on increased coverage for bullish forecasts from the Satis ICO research group. The firm projected that bitcoin could reach as high as $96,000 over the next 10 years and might hit $33,000 next year.
Furthermore, the expected launch of ethereum futures also seems to be propping up bitcoin as investors are being warned that this might actually spur bearish pressure for ETH. With that, it’s understandable that many might be moving their holdings to bitcoin instead.
This is renewing the narrative that bitcoin is in for a massive rebound before the year comes to a close, possibly hitting its record highs or breaking those by then. Keep in mind that bitcoin is creating a double bottom on its longer-term charts and is also gaining momentum to attempt a neckline test soon. If that pushes through, an even larger uptrend could ensue and keep bitcoin on track towards hitting those bullish projections.
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