Bitcoin Price Analysis: Time to Start Getting Bullish Again?
Bitcoin is still trading inside an ascending channel on the 1-hour time frame and looks ready for a move up to the next resistance. This could be at the mid-channel area of interest at $7200.
Stronger bullish pressure could take it up to the very top of the channel around $7600 or higher. The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to continue than to reverse. Price has also moved past the moving averages as an early signal of bullish momentum.
However, RSI looks ready to turn lower as it approaches overbought levels. This means that buyers are feeling exhausted and could let sellers take over. In that case, another test of support around $6800 could be seen. Stochastic is around middle ground to signal further consolidation.
Geopolitical risks are returning to financial markets and this has been supportive of bitcoin price in the past. In particular, the threat of military action on Syria for the alleged chemical attack in Damascus over the weekend spurred talks of a potential strike from the US.
With that, the dollar is also under a bit of selling pressure, especially since trade war fears aren’t completely gone. Tensions have cooled after Chinese President Xi Jinping’s latest speech but trade talks could still turn sour.
The US currency was also bogged down by weaker than expected CPI, preventing it from taking full advantage of hawkish FOMC minutes. Policymakers were mostly in agreement that gradual hikes are the way to go as the economic outlook has improved in recent months and inflation could pick up.
As for bitcoin itself, historical price action has shown that the cryptocurrency tends to get a boost around Q2 and that’s what most investors are looking for. Profit-taking leading up to the tax deadline could fade in the coming week and allow traders to reopen positions.