Bitcoin has been moving inside a $100-sized range, bouncing off support at $6,360 and resistance at $6,460. Price recently made a sharp rally but hit a roadblock at the top of the range once more.
The 100 SMA appears to be attempting a bullish crossover from the 200 SMA to signal that the path of least resistance is to the upside. In other words, support is more likely to hold than to break. In that case, another bounce to the top might be in the works.
Stochastic is starting to pull up without even reaching the oversold zone, indicating that buying pressure is returning. RSI, on the other hand, is still pointing down to reflect the presence of selling pressure that might be enough to take bitcoin to the bottom of its range. A breakout in either direction could spur a rally or a selloff that’s the same height as the rectangle.
The lack of follow-through on the sharp move earlier on led profit-taking to ensue, erasing most of bitcoin’s intraday gains. Traders continue to hold out for bigger catalysts and take it easy with uncertainties still in play.
One of these is the launch of bitcoin futures on ICE Bakkt, as traders worry that this might lead to similar price trends stemming from the CMB bitcoin futures launch last year. Apart from that, anxiety surrounding the prolonged SEC decision on bitcoin ETF applications is also keeping a lid on bitcoin gains.
Still, it’s worth noting that the CFTC has given the thumbs-up for the ICE for its futures, which suggests friendlier regulation. This could also turned out in favor of an approval from the SEC for bitcoin ETFs.
Apart from that, the institutional platform by Fidelity could also contribute strong volumes early next year, thereby leading to strong bitcoin price gains.