Bitcoin is trading higher inside an ascending channel on the 1-hour chart, and support that coincided with the bottom of a long-term triangle held once more. Price is now at the mid-channel area of interest and sustained bullish pressure past this point could take it above the triangle top.
The 100 SMA appears to be above the longer-term 200 SMA for now to signal that the path of least resistance is to the upside. This suggests that resistance is more likely to break than to hold. However, the moving averages could simply be oscillating to reflect range-bound conditions.
Stochastic is pointing up, also suggesting that buyers have the upper hand and might have enough energy to push for more gains. A candle closing past the $6,600 mark could be enough to signal a bullish breakout and a sharper climb past the channel top near $7,000 could bring more buyers in.
RSI is also heading north so Bitcoin might follow suit while buyers are in control. However, both oscillators are also closing in on overbought levels to signal exhaustion among bulls and a possible return in selling pressure.
Bitcoin could another boost from remarks by CFTC’s Giancarlo who said that cryptocurrencies are here to stay and that he thinks there is a future for them. This was underscored by similar remarks from Twitter’s Dorsey who suggested that cryptocurrencies could solve problems for countries that are still struggling to establish their own fiat currencies.
Apart from these remarks, the fundamental picture is improving for Bitcoin as Google has reversed its ban on Bitcoin and ICO ads this month, likely leading to a pickup in general interest. The addition of more crypto pairs on Coinbase could also usher in stronger volumes and increased activity, although traders still maintain some degree of caution until the SEC makes its ruling on Bitcoin ETFs.
Rachel completed her degree in Mathematical Finance in 2009 and has since been involved in technical analysis of various markets, such as forex, commodities, and digital currencies.