Bitcoin (BTC) Price Watch: Bulls Defending Channel Support

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Bitcoin Price Key Highlights

• Bitcoin price is still safely inside its ascending channel after another test of support.
• This signals that bulls continue to defend the bottom and that the uptrend could stay intact.
• Technical indicators, however, show mixed signals as the moving averages are bullish while oscillators suggest another drop.

Bitcoin price has resumed its climb after another dip to the bottom of its short-term channel, indicating that bulls are not letting up.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse. These moving averages are also close to the bottom of the channel to add to its strength as support.

However, RSI is starting to turn lower to signal a return in bearish pressure. Stochastic is moving up but in the overbought region to reflect slowing bullish momentum and a potential drop back to support.

If bulls continue to stay in the game, bitcoin price could resume the climb to the top of the channel near the $8,000 mark. An upside break could lead to a steeper climb while resistance holding could spur another pullback to the bottom around $7,700.

Market Factors

Bitcoin price suffered another dip in recent sessions but pulled up for a strong bounce when the SEC announced that it is not changing the securities rule to accommodate ICOs. It did not mention anything negative on bitcoin, however, as it cited:

Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin. That type of currency is not a security.”

Many read this to mean that the group will not be regulating bitcoin in the near future or have those entities registered under their jurisdiction.