Bitcoin has formed higher lows and higher highs, creating an ascending channel on its 1-hour time frame. Price is currently testing the resistance and might be due for a pullback to support where more bulls are likely waiting to join in.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with the bottom of the channel around $6,400. The 50% Fib is closer to the 200 SMA dynamic inflection point while the 38.2% Fib lines up with the mid-channel area of interest.
The 100 SMA crossed above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The gap between the two is still widening to reflect strengthening bullish momentum.
Stochastic is also starting to pull up from the oversold region to signal that buyers are taking over while sellers take a break. However, RSI is heading south so bitcoin could still follow suit while there’s bearish pressure left. Reaching oversold conditions and turning higher could also signal a return in bullish pressure.
This particular cryptocurrency managed to stay supported even as the SEC decided to once again delay its decision on the bitcoin ETF application of VanEck/SolidX for a longer comment period. For many, this still keeps hopes up that an approval could be in the works as the regulator avoided a flat-out rejection.
This kind of optimism might be enough to keep bitcoin price propped up in the weeks or months ahead, as more folks try to buy on dips for fear of getting left behind by potentially strong rallies. Expectations for a rebound before the end of the year are still in play, although market watchers would need to get a strong positive catalyst to sustain this sentiment.
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