Bitcoin (BTC) Price Analysis: Aiming for Channel Top
Bitcoin continues to trend lower inside a short-term descending channel on its 1-hour time frame. Price recently bounced off support but continues to tread sideways as it tests the mid-channel area of interest.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, there’s a stronger chance for an uptrend to follow than for the downtrend to resume. However, price is moving below the 100 SMA dynamic inflection point, which might just keep holding as resistance. Also, the gap between the moving averages is narrowing to signal that bullish momentum is weakening and that a bearish crossover might be due.
If that happens, price could break below the channel support around the $3,600 and spur a larger correction from its recent rally. A break past the small channel top, on the other hand, could confirm the bullish flag formation and a succeeding climb.
RSI is on middle ground and moving sideways to signal that consolidation could carry on. The oscillator appears to be pointing up to signal the presence of bullish momentum. Stochastic is also starting to turn higher after dipping to the middle of its range, also suggesting that buyers might be looking to return.
Traders seem to be disappointed over the performance of bitcoin over the past week as price remains far below the projected “$5,000 in the next 10 days” by a cryptocurrency expert on Twitter. Still, a lot of analysts are holding on to their bullish forecasts as Fidelity’s launch of their institutional platform is just a few weeks away.
Any delays could force bitcoin to retreat, though, as it would also mean that a pickup in volumes would also be pushed back. All systems go could lead to steady gains and potentially more volatile moves as more and bigger market players join in.