Bitcoin is in a steady uptrend and is making a quick pullback to its ascending channel support to gather more bulls. If support holds, price could bounce back up to the resistance closer to the $10,000 major psychological level.
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The 100 SMA is close to the channel bottom to add to its strength as support. A larger pullback could still find a floor at the 200 SMA dynamic inflection point around $8700.
Stochastic is indicating oversold conditions already, which means that sellers are already exhausted and willing to let buyers take over. The current support also lines up with a short-term area of interest, which means that bulls are waiting around this level. A break below the 200 SMA, though, could mean that a much deeper correction is underway.
In a conference in Sohn, serial investor and entrepreneur John Pfeffer talked about how bitcoin could rise to at least $90,000 or significantly higher. He also declared that bitcoin is “better than gold” and that decentralization, as well as censorship resistance, are the core pillars of bitcoin prominence. He said:
Bitcoin is the first viable candidate to replace gold the world has ever seen. So if Bitcoin becomes the dominant non-sovereign store of value, it could be the new gold, or new reserve currency.
Risk aversion is present in Wall Street as another slump in the tech sector has dragged equity indices and higher-yielding currencies down. This likely dampened sentiment in the cryptocurrency industry as well, leading to some profit-taking in recent bitcoin rallies.
A couple of central bank statements are lined up next, and this could have a material impact on overall market sentiment for the rest of the week.
*The market data is provided by TradingView.