Bitcoin Price Key Highlights
Bitcoin price has been trading inside a narrow ascending channel on its 1-hour chart, following a quick pullback to a previously broken resistance area.
Recall that bitcoin broke above a longer-term symmetrical triangle pattern, indicating that bulls are gaining traction.
However, bullish pressure hasn’t been that strong, as bitcoin is torn between dollar strength and improving risk sentiment.
Bitcoin price is gradually trading higher inside an ascending channel and might be due to test the resistance near $445. Will the Channel Hold?
Technical indicators suggest that bitcoin price might bounce off the top of the range, as RSI is starting to turn down from the overbought zone. Stochastic still seems to be on the move up but has just landed in overbought territory, indicating that buying pressure might fade soon.
In addition, the 100 SMA is below the 200 SMA, suggesting that the path of least resistance is to the downside. However, an upward crossover appears to be brewing, which could mean that the uptrend might still carry on.
A bounce off the channel resistance at $445 could lead to a test of the channel support at $425, which is right around the dynamic support of the moving averages. Buyers might be waiting to enter around these levels, allowing the uptrend to gain stronger momentum.A strong dollar rally, however, might lead to a break of the channel support and a corresponding downtrend if risk aversion returns. Keep in mind that bitcoin previously broke below a short-term rising trend line , which suggests that buyers are having trouble sustaining the strong climb. A weak rally might take place from here, as bitcoin price is still safely above the broken triangle resistance around $420. Market Events Data from the US economy came in stronger than expected […]
