Bitcoin bulls appear to be getting back on their feet as price has been forming higher lows and higher highs inside a new rising channel. A bounce off support just took place so price might be aiming for the channel top at $6,700 next.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The gap between the moving averages is also widening to reflect strengthening bullish momentum. Also, the 200 SMA lines up with the channel support to add to its strength as a floor, and it recently held on the latest dip.
RSI is on the move up so bitcoin price could follow suit while buyers have the upper hand. Stochastic also has room to climb before hitting overbought levels but appears to be topping out and moving sideways. A return in selling pressure could be seen once it starts heading south, and bitcoin might follow suit. In that case, another test of support or even a breakdown could happen.
Bitcoin appears to be shrugging off previous negative developments and focusing on positive updates, as well as longer-term demand. Note that it has been reported that Morgan Stanley and Citigroup are looking into offering crypto products for their clients, overshadowing earlier news of the SEC temporary suspension on Bitcoin Tracker One and Ethereum Tracker One.
With that, it’s been a somewhat positive start to the week and many hope that the rallies could bear more fruit this time. Further updates on institutional interest could keep price afloat and possibly even lead to breaks of longer-term ceilings.
Renewed focus on regulation, on the other hand, in particular the odds of getting an SEC approval for the remaining bitcoin ETF applications could still lead to some bearish moves.