Bitcoin Price Analysis

Bitcoin (BTC) Price Analysis: Some Bullish Hints

Bitcoin is still trending lower inside a descending channel on the 1-hour chart but is currently testing the resistance to attempt another break. However this lines up with an area of interest or former support that might now hold as a ceiling.

This level happens to line up with the 50% Fibonacci retracement level around $3,600 so there may be some selling pressure at this level. A break above it could also hit a roadblock at the 61.8% Fibonacci retracement level or the $3,700 area. This also happens to coincide with the 200 SMA dynamic inflection point.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Then again, the gap between the two moving averages is narrowing to reflect slower selling pressure and hint at a potential bullish crossover. Also, bitcoin has climbed above the 100 SMA dynamic inflection point to signal that bullish momentum is picking up.

RSI has reached the overbought zone and started to turn lower, indicating a pickup in selling momentum. Stochastic is also heading south to indicate that bears have the upper hand and could push price to the swing low at the $3,225 area or to the channel bottom closer to $3,000.

On the flip side, a strong recovery among buyers could spur a move to the swing high around $4,050 and a break above this could confirm that a reversal from the downtrend is underway.

Bitcoin has had a lot to deal with in the past weeks as it attempts to shake off the FUD that is currently weighing on prices. Although the recent run has been positive, bulls have been quick to book profits off bounces for fear of another leg lower in prices.

Rachel Lee
About author

Rachel completed her degree in Mathematical Finance in 2009 and has since been involved in technical analysis of various markets, such as forex, commodities, and digital currencies.
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