Bitcoin Price Key Highlights
- Bitcoin price looks ready to resume its climb as it forms a new uptrend channel on the 4-hour chart.
- Price is also forming an inverse head and shoulders on this same time frame.
- Applying the Fib extension tool on the latest pullback shows how high bitcoin price could go from here.
Bitcoin price appears to have completed its pullback on the latest uptrend as it is bouncing off the area of interest.
Technical Indicators Signals
The 100 SMA has crossed above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, bulls are gaining traction and could allow the uptrend to resume.
The 38.2% Fib extension level lines up with the swing high around $11,000 while the 50% level is closer to the channel resistance and long-term area of interest at $12,000. The 61.8% extension is at $12,879.30 and the 76.4% extension is at $13,737. The full extension is at $15,123.30.
Stochastic is indicating overbought conditions, though, and looks ready to turn lower to reflect a return in selling pressure. RSI has some room to climb but is closing in the overbought region as well.
Bitcoin has drawn support from news that Circle has acquired Poloniex, which could mark the start of more mergers in the industry. In that case, more firms could combine capabilities and expand their market reach, probably leading to an IPO at some point.
However, the dollar has also enjoyed stronger demand in recent sessions thanks to a hawkish view shared by new Fed Chairperson Jerome Powell. He noted that risks are tilted to the upside thanks to tax cuts, strong global growth, and better trade activity.
Interestingly enough, bitcoin price was able to draw some gains during the session, even though equities and commodities closed lower. This marks a shift in the dynamic wherein bitcoin usually trails these riskier assets and benefits from risk appetite.