Bitcoin Price Key Highlights
- Bitcoin price has been trending higher lately, moving inside an ascending channel visible on its 4-hour time frame.
- Price is testing the channel resistance, which might keep gains in check for the near-term, triggering a pullback to the channel support.
Bitcoin price might be in for a correction from its recent rally, as the ascending channel resistance is holding as a barrier for now.
Bearish Divergence Signal
Profit-taking could take place, with technical indicators suggesting that the recent climb is overdone. In particular, stochastic and RSI have both formed lower highs while bitcoin price made higher highs, creating a bearish divergence on the 4-hour chart.
Resistance around the previous highs or $290 could hold, leading bitcoin price to drop towards the channel bottom around $265. This is close to the 100 SMA, which might hold as a dynamic inflection point.
Speaking of moving averages, the short-term 100 SMA is still above the longer-term 200 SMA, which means that the general trend could stay up. However, a break below these indicators could be an early signal that a reversal is brewing.
Intraday support level – $265
Intraday resistance level – $290
Charts from TradingView