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Bitcoin Price Key Highlights
- Bitcoin price recently made a large correction as expected and bounced off the rising trend line illustrated earlier.
- Applying the Fib extension tool shows the levels that price could reach if it does resume the climb.
- There are a few signs that bulls might be losing traction from here, but this still hinges mostly on market events.
Bitcoin price bounced off the support area as it made a pullback from its recent rally, indicating that buyers are getting back in the game.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is still to the upside. In other words, the rally is more likely to carry on than to reverse. Also, the gap between the moving averages is growing to reflect increasing bullish pressure.
Using the Fib extension tool on the latest pullback move indicates that bitcoin price could head up to the 76.4% level next at the latest swing high. A full extension of the move could last close to the $2000 major psychological barrier, but price seems to be finding resistance at the 50% level at the moment.
RSI has been on the move up recently but is now turning lower to indicate a return in selling pressure. Stochastic is also climbing but appears to be making a turnaround upon reaching the 75.00 level. If it continues to head south, bitcoin price might follow suit and go for another test of the trend line support near $1700.
Market Events
Traders are sitting on the edge of their seats to hear the SEC decision on the COIN bitcoin ETF this week. Recall that the regulator already turned down this proposal on the grounds that bitcoin is traded in largely unregulated markets but later on opened it back up for comment and review.
The Winklevoss twins have been given until May 15 to submit additional requirements as well, so many are hopeful that these will be enough to gain approval. If so, bitcoin could enjoy greater market interest and higher liquidity as more funds and individuals can have access to the cryptocurrency.
