Bitcoin Price Key Highlights
- Bitcoin price has gained a bit more traction on its bounce, signaling that bulls are back in the game.
- If bullish pressure is strong enough, a break past the inverse head and shoulders neckline on the 4-hour chart could take place.
- In that case, a stronger rally for bitcoin price could be underway.
Bitcoin price is forming an inverse head and shoulders pattern to signal that a longer-term climb could take place.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This suggests that there’s still a chance for the selloff to resume. However, the gap between the moving averages has significantly narrowed to indicate a potential upward crossover.
In that case, bullish momentum could gain more traction and allow bitcoin price to surge past the neckline around $8,400. The chart pattern is around $2,000 tall so the resulting uptrend could be of the same size, taking bitcoin to the $10,000 area of interest next.
Stochastic is moving up to confirm that buyers have the upper hand. However, the oscillator is nearing overbought conditions to show that buying pressure could fade. If sellers return, another dip to the nearby inflection points at the moving averages could take place. RSI seems ready to turn higher to reflect a return in buying energy.
Market Factors
Several analysts have been pointing out bullish signals and it seems to be turning into self-fulfilling prophecies as more traders get wind of these predictions. Then again, sentiment in the industry has considerably improved after news of George Soros prepping to invest in the industry broke out.
Dollar demand remains supported, though, as bond yields are rising on renewed prospects of tightening due to mostly upbeat data and hawkish FOMC remarks. Still, the developments in the cryptocurrency space and lingering geopolitical risks have kept bitcoin price supported.
