Bitcoin Price Key Highlights
- Bitcoin price went for a test of the channel support as predicted in an earlier article and a bounce took place.
- This signals that price could be headed back to the channel resistance to carry on with its uptrend.
- A fresh round of risk aversion could keep bitcoin in demand but technical indicators are giving mixed signals.
Bitcoin price found support at the bottom of its ascending channel and looks prime for another test of resistance.
Technical Indicators Signals
The 100 SMA is above the 200 SMA so the path of least resistance is to the upside. This suggests that bitcoin price might climb to the top of the channel at $690-700 or at least until the previous highs closer to $680. In addition, the 100 SMA coincides with the bottom of the channel, adding to its strength as a floor.
However, stochastic is already in the overbought area, which means that buyers could run out of steam soon. The oscillator hasn’t crossed down to indicate a return in selling pressure yet so a few more gains could be possible.
If a break below the channel support at $670 is seen, bitcoin price could still bounce off the 200 SMA dynamic inflection