Bitcoin (BTC) Price Analysis: Bulls Waiting to Charge Again Right Here
Bitcoin found resistance at the top of its ascending channel on the 1-hour time frame and has since pulled back to the Fibonacci levels. The 61.8% retracement level already seems to be holding as support and could spur a bounce back to the swing high at $10,000 or the channel resistance closer to $10,200.
The 61.8% Fib also lines up with an area of interest or former support at $9,300 which makes it a potentially strong inflection point. A larger pullback, however, could still last until the actual channel bottom at $9,200.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to continue than to reverse. However, the gap between the moving averages is narrowing to signal a potential slowdown in bullish momentum.
At the same time, stochastic is on its way down to show that sellers still have the upper hand. RSI, on the other hand, is turning higher to reflect a return in buying pressure. Note that price is below the 200 SMA dynamic inflection point, which is a point in favor of bears as well.
Apart from profit-taking at the $10,000 mark, remarks from finance moguls Warren Buffet and Bill Gates spurred a drop in bitcoin as they reiterated their bearish views.
In an interview with CNBC, Warren Buffet said:
“When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along.”
In the same interview, Bill Gates noted:
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment. I would short it if there was an easy way to do it.”
Naturally, this spooked a lot of investors into liquidating their positions, but it appears that underlying market fundamentals and positive developments in the industry earlier on could keep the trends intact.