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Bitcoin Price Key Highlights
- Bitcoin price has just breached the $2200 level and is trading around $2300, setting new all-time highs again.
- This is around the resistance of a new ascending channel visible on its short-term time frames so a pullback to support might be due.
- Technical indicators are showing rally exhaustion but that the ongoing uptrend could resume at some point.
Bitcoin price continues to trade higher but could be due for a quick correction before going further north.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse even if bitcoin price pulls back. The 100 SMA is also close to the rising channel support at $2150, so this might serve as the line in the sand for a correction.
The Fib tool on the latest swing low and high shows that the 61.8% Fibonacci retracement level lines up with the channel support around $2150. However, given the strength of the climb, a shallow pullback might be in the cards until the area of interest at the 38.2% Fib or $2200 handle. In any case, if the Fib levels hold as support, another move to the $2300 could be underway or perhaps another break past the record highs.
RSI is already indicating overbought conditions, possibly drawing bears back to the mix. Similarly, stochastic is in the overbought zone to reflect rally exhaustion, but both oscillators have yet to turn lower before bitcoin price could follow suit.
Market Factors
Bitcoin volumes continue to rise all over the globe, in addition to the strong surge in interest coming from Japan. Rising geopolitical risks, this time stemming from the Manchester Arena bombing and the looming snap elections in the UK, appear to be encouraging traders to non-traditional assets.
Apart from that, bitcoin price is also accelerating faster than other digital currencies after a meetup between miners and startup executives over the weekend resulted in a scaling agreement. As it turns out, a new proposal for an upgrade has been made and has gained support from more than 80% of the miners.
