Bitcoin price found support at the bottom of its rising channel visible on the 4-hour time frame but seems to be hitting an upside barrier. Price retreated upon testing the closest Fib extension level at the $6,626.3 area and could be due for another dip to support.
The 100 SMA is below the longer-term 200 SMA on this time frame so the path of least resistance is to the downside. This basically means that support is more likely to break than to hold, possibly leading to a reversal from the climb. However, the gap between the moving averages has narrowed to signal slowing bearish momentum and a possible upward crossover.
In that case, Bitcoin could still aim for the next upside target at the 50% extension or the $6,700 mark near the mid-channel area of interest. Stronger bullish pressure could take it to the 78.6% extension at the swing high and channel top or even past the resistance and onto the full extension at $6,956.3.
Stochastic is on the move up and has a bit of room to go before hitting overbought levels to reflect exhaustion. However, the oscillator already seems ready to move south to signal a return in selling pressure. RSI has also been climbing but is starting to move sideways to signal consolidation.
A survey conducted by Fundstrat revealed that 54% of institutional investors think that Bitcoin has already bottomed out, possibly paving the way for a rebound before the end of the year. Predictions range to as much as $15,000 and beyond, so it wouldn’t be surprising if more traders try to reestablish long positions for fear of missing out.
Developments have been mostly positive so far, although there is still some degree of caution while traders await the SEC ruling on Bitcoin ETF applications.