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Bitcoin Price Key Highlights
- Bitcoin price has been on a steady climb recently and is closing in on a nearby resistance level.
- Price is still trading inside a falling wedge pattern on its daily chart and is about to test resistance around $7,500.
- Technical indicators suggest further bearish pressure, but there are some signs of bullish momentum.
Bitcoin price is gearing up to test the top of its daily falling wedge, and technical indicators suggest that bears could return here.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s a stronger chance for the selloff to resume than to reverse. The gap between the moving averages is pretty steady so there seems to be no threat of a crossover just yet.
Price has also moved past the 100 SMA dynamic inflection point to signal stronger bullish pressure and may be gearing up for a test of the next dynamic resistance at the 200 SMA next. This would be close to the $8,000 major psychological mark, which may contain some take-profit orders.
RSI is heading higher but is already hovering around overbought levels to signal bullish exhaustion. Similarly stochastic is in the overbought region to indicate that buyers might take a break. Turning lower could bring selling pressure back in and lead to another drop to the wedge support or just the 100 SMA dynamic support.
Bitcoin has gotten a strong boost from bullish market forecasts, with the pickup in momentum foreseen to sustain the highly-anticipated rebound for the year. Keep in mind, though, that traders are still on edge when it comes to the bitcoin ETF ruling from the SEC due later this month. Approval could lead to another leg higher for the cryptocurrency while rejection might lead to dips.
