Bitcoin Price Key Highlight
- Bitcoin price recently formed lower highs and found support at $6,100 to create a descending triangle.
- Price was rejected on its test of resistance, but bulls seem ready for another attempt to break higher.
- Bitcoin is forming a short-term ascending channel and is currently testing support.
Bitcoin price bounced off its descending triangle top, but bulls might gain more energy on this bounce off the short-term channel.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Then again, the moving averages might simply be oscillating to reflect range-bound conditions and could still go for a bullish crossover later on.
Stochastic is indicating oversold conditions and is turning higher to reflect a return in bullish pressure. A bit of bullish divergence can also be seen as price formed higher lows while the oscillator had lower lows. RSI is also starting to point north to suggest that buyers might regain control of price action.
If the short-term channel support holds, bitcoin price could make its way up to the Fib extension levels next. The 38.2% extension is at the mid-channel area of interest around $6,600 then the 61.8% extension is at the channel resistance and swing high. Stronger bullish momentum could take bitcoin price up to the 78.6% extension past the channel and triangle top or the full extension at $7,066.
Google will be lifting its ban on bitcoin and ICO ads by next month, and this move should revive general public interest in cryptocurrencies. With that, traders could expect stronger volumes and increased activity. Keep in mind, however, that the search engine will only approve ads from regulated crypto companies in the US and Japan.