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Bitcoin might be done with its slide as it failed in its last two attempts to break below the $6,200 area, creating a double bottom on the short-term time frames. Price has yet to test and break past the neckline around $6,600 to confirm that a reversal is underway.
The 100 SMA is above the longer-term 200 SMA for now to suggest that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, the gap between the indicators has narrowed enough to suggest that a new crossover is imminent.
Note that price is also moving below these dynamic inflection points, which means that these are holding as dynamic resistance at the moment. If selling pressure persists, price could find itself testing the bottoms or making new ones instead.
RSI is making its way down after recently turning from overbought levels, indicating that sellers are taking over while buyers take a break. Stochastic also looks prime for more moves south, so bitcoin price could follow suit.
There has been a notable pickup in risk-taking as of late, as investors are breathing a sigh of relief on smaller than expected tariffs from both the US and China. Although the former is ready to increase duties from 10% to 25% later in the year if China doesn’t cooperate and might still be targeting $267 billion in Chinese imports for another round of tariffs, there have been indications that both sides might take it easy from here.
With that, traders are reviving their riskier holdings, including that of bitcoin and other cryptocurrencies. There is still some anxiety surrounding the SEC ruling on bitcoin ETF proposals as rejection could put the industry a step back in gaining a thumbs-up from regulators and being more accessible to institutional and retail traders.
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