Bitcoin Price Key Highlights
- Bitcoin price is forming higher highs and higher lows inside an ascending trend channel on the 1-hour chart.
- Price just bounced off the channel bottom and may be due for a test of the resistance at $6,600.
- There are nearby inflection points at the mid-channel area of interest as technical indicators reflect a rally slowdown.
Bitcoin price is slowly trending higher in a short-term ascending channel, possibly setting its sights on the very top.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA for now, but a downward crossover seems to be brewing. If completed, this would signal that the path of least resistance is to the downside or that support is more likely to break than to hold.
If so, another selloff to the long-term lows around $5,800 or lower could be underway. These moving averages could also hold as dynamic resistance levels since they line up with the mid-channel area of interest at $6,450.
RSI is heading lower to show that bearish pressure is present. In that case, another dip to support might take place. Similarly, stochastic is also moving south so bitcoin price could still follow suit.
The mood in financial markets appears to have improved on account of lower-than-expected tariffs from China. After the US announced their set earlier on, many feared a huge retaliatory effort from Beijing, but the amount targeted was lower at $60 billion also at lower rates than what many feared.
Because of that, the pickup in risk-taking has lifted cryptocurrencies somewhat, allowing bitcoin price to keep its head above water despite more naysayers. Traders are still on edge ahead of the SEC decision on bitcoin ETF applications, worrying that another set of rejections could further delay institutional investments.
