Bitcoin found support at the bottom of its ascending channel previously highlighted as bulls were waiting to buy on dips. This could allow price to climb back to the very top around the $7,000 major psychological mark or at least halfway through until $6,700.
The 100 SMA is slightly above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, the gap between the moving averages is still pretty tight so it might be too early to call as the indicators might be oscillating to signal consolidation. These moving averages might also hold as near-term resistance just below the mid-channel area of interest.
Stochastic is moving north so bitcoin might follow suit while bullish pressure remains in play. The oscillator has some room to climb before hitting overbought levels, which suggests that the bounce could still gain some traction. RSI is also just climbing out of the oversold region to indicate that buyers are warming up and could still sustain the rally for a bit longer before overbought conditions are seen.
Bitcoin is celebrating its 10-year anniversary but its performance year-on-year has been lackluster. It didn’t help that JPMorgan CEO Dimon once again had negative remarks to say on the cryptocurrency, but bulls didn’t seem to mind.
Instead, the pickup in risk-taking in financial markets and profit-taking at the end of the month likely buoyed some gains. Optimism for a fresh start this November might also be coming to play as some still expect a big rebound to happen before the end of the year.
Expectations for the ICE Bakkt bitcoin futures are also in play, as well as anticipation for Fidelity’s institutional platform to bring in strong volumes early next year.