Bitcoin Price Key Highlights
- Bitcoin price is in a slow but steady climb inside an ascending channel on the 1-hour time frame.
- Price is currently testing the resistance and might be due for a correction to the bottom or at least the middle.
- Technical indicators are also signaling that the uptrend is likely to resume from here.
Bitcoin price looks prime for a pullback on its climb as bulls might need to gather more momentum to sustain the climb.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This basically means that the uptrend is more likely to resume than to reverse.
In addition, the 100 SMA is currently holding as dynamic support and could continue to keep losses at bay if bullish pressure returns at this point. The 38.2% retracement level lines up with the mid-channel area of interest around $6,350 and the 200 SMA is closer to the 50% Fibonacci retracement level. The 61.8% Fib is just above the ascending channel support around $6,100 and might be the line in the sand for this short-term uptrend pullback.
RSI has been on the move down to indicate the presence of selling pressure, but the oscillator is dipping into oversold territory and starting to pull up. Stochastic looks ready to head higher as well, hinting that buyers are eager to return. If any of the Fib levels hold, bitcoin price could revisit the swing high near $6,700 or move higher.
Market Factors
Bitcoin price has sustained a positive start to the quarter, although some have dismissed this as a mere dead cat bounce. By the looks of it, the lack of negative headlines on security incidents or regulatory action so far has allowed investors to maintain their optimism.
Meanwhile, the dollar could also be shedding some ground as traders lighten up on positions ahead of the Fourth of July holiday, as well as the release of top-tier FOMC minutes and the NFP report later in the week.
