Bitcoin (BTC) Price Analysis: Bulls Refuse to Back Down
Bitcoin bulls continue to defend an area of interest at the ascending channel on the 4-hour chart. This comes after price previously broke below a smaller ascending channel.
Price is also safely above the former descending trend line visible on the same time frame to indicate that the reversal could still gain traction. If price bounces back to the top of the channel, an inverse head and shoulders could be completed.
In addition, the 100 SMA is starting to cross above the longer-term 200 SMA on this time frame to indicate that bullish momentum is about to pick up. For now, though, the moving averages appear to be holding as dynamic resistance.
RSI is on the move up but appears to be turning from its climb as it closes in on the overbought region. This reflects weakening bullish pressure and a possible return in selling momentum while buyers take a break. Stochastic is also indicating overbought conditions and bitcoin could follow suit if it moves south.
Bitcoin had a rough run in the previous week as it erased nearly half the gains for the first part of July. Many blame the dip on negative remarks from famous economist and another hack on a cryptocurrency exchange.
However, bulls seem keen to shake these negative vibes off and return focus to positive industry developments. After all, regulation seems to be more understanding of bitcoin and blockchain potential. Still, markets took a hit on news that US officials indicted twelve Russians for allegedly using bitcoin and other cryptocurrencies to interfere in the 2016 elections.
Dollar strength and risk-off moves in the previous week may have also played roles in dampening demand for bitcoin and other cryptocurrencies, so trade-related headlines this week could still make an impact on BTCUSD movement.