Bitcoin is currently hovering at an area of interest at the middle of its range on the 1-hour time frame, still deciding whether to bounce to the top or head back to support.
The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that the near-term resistance is more likely to break than to hold, sending bitcoin up to the highs near $4,300.
Then again, the moving averages might simply be oscillating to reflect range-bound action. Still, bitcoin is above both indicators, so these could keep holding as dynamic support levels near the area of interest. A break below this, however, could spur a drop to the range support around $3,770.
RSI is just making its way down from the overbought zone to indicate that selling pressure is returning. This could provide enough bearish momentum to take price below the range support and even a longer-term slide. Stochastic, on the other hand, is just making its way out of the oversold region to signal that bullish pressure is present and might even take price beyond the recent highs.
Bitcoin seemed to make a big retreat from the February rallies, but it is looking to be a major retracement that is now completed. Price could be due to test the nearby upside targets or resume the longer-term rebound.
Recall that several analysts have been calling a bottom in bitcoin so far this year, anticipating that the pickup in institutional interest spurred by the launch of Fidelity’s platform could be enough to shore prices higher.
However, the recent rally in bitcoin is being pinned on the strong climb in litecoin, which is having an overall positive effect on cryptocurrencies across the board lately.