Bitcoin (BTC) Price Analysis: Hovering Near Channel Top
Bitcoin continues to trade higher inside an ascending channel on its 1-hour time frame and has been attempting to break past the resistance this week. Technical indicators are showing that the uptrend is more likely to resume than to reverse.
For one, the 100 SMA is safely above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. The 100 SMA is holding as dynamic support as well, although bitcoin appears to be closing below it already. In any case, support could be located at the 200 SMA dynamic inflection point also.
RSI is crawling higher to show that buying pressure is returning and might be enough to spur another test of resistance around $6,800. Similarly stochastic is moving north so bitcoin could follow suit while buyers remain in control.
So far, the mid-channel area of interest is able to keep losses at bay but a break below this could spur a test of the channel bottom around $6,300. A move below that floor could spur a reversal from this short-term climb.
On the other hand, a break past the $6,800 to $7,000 levels could mark the start of a steeper and more prolonged climb for bitcoin.
Note that the dollar is facing the NFP release later today and downbeat results could undermine tightening expectations for the Fed, thereby dragging the US currency lower across the board. Bitcoin might be poised to take advantage since it has been raking in some gains away from traditional markets recently.
Besides, the cryptocurrency industry appears to be on better footing these days, owing to a positive start for the quarter and the lack of negative headlines so far. If this sentiment keeps up, bitcoin could hold on to its wins and go for more.