Bitcoin Price Analysis: Next BTC/USD Upside Targets
Bitcoin has been trending higher inside an ascending channel and has found support at the mid-channel area of interest. Bulls look ready to take price up to the resistance around the $8500 level and beyond.
Applying the Fibonacci extension tool on the latest correction move shows that the 38.2% level lines up with the channel resistance and the swing high. Stronger bullish momentum could take it up to the 50% extension at $8686 or the 61.8% extension at $8888. The 76.4% extension is located at $9138 and the full extension is at $9542.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, the gap is narrowing to indicate slowing bullish momentum. Still, the 100 SMA is holding as dynamic support at the moment.
Stochastic is turning down from overbought levels, though, so a return in bearish pressure may be due. In that case, another test of the mid-channel area of interest or even the channel bottom could be possible. RSI has some room to climb before hitting overbought conditions so buyers could stay for a bit longer and allow a move to the top of the channel.
According to cryptocurrency hedge fund manager Dan Morehead, CEO of Pantera Capital, bitcoin is showing a rare buy signal. He in an interview with CNBC Fast Money:
Something that’s growing that fast hardly ever gets below its 200-day moving average. When it does, it’s a very good time to buy.”
Morehead went on to say “It’s 65 percent below its high, you don’t get that opportunity very often.” Sentiment in the industry has considerably improved since the news of Soros Fund Management prepping to place bets in the space broke out. Note that Q2 has historically been bullish for bitcoin as well.