Bitcoin is still trending higher even on the latest dip as it pulls back to the bottom of the newly-forming ascending channel on the 1-hour chart. Price could be due to resume the climb to the next targets marked by the Fib extension tool.
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The 100 SMA is also around the bottom of the short-term rising channel support, adding to its strength as a floor.
If the uptrend resumes from here, the price could make its way to the 38.2% extension at the mid-channel area of interest or up to the 50% extension at $4,024. The 78.6% extension is closer to the top of the channel at $4,160 and the full extension is at $4,262.5. The gap between the moving averages is widening to reflect stronger bullish pressure.
RSI is turning higher and moving north could confirm that buyers are regaining the upper hand. Stochastic is also pulling up after dipping slightly in the oversold region to signal that buyers are getting back in the game, too.
Bitcoin has had quite a good run in the past couple of days, enough to spur more positive coverage in media outlets that are also helping keep investor sentiment supported. However, as with most big moves, corrections usually follow and it’s up to bulls to signal whether or not the recent breakouts could be sustained.
As mentioned previously, Bitcoin might still need to get a strong industry development in order to sustain a reversal from the earlier slide. Buyers have been quick about booking profits at key resistance levels, although it’s also worth noting that support zones are being strongly defended by buying on dips.
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