Bitcoin Price Key Highlights
- Bitcoin price is still trending higher on its 4-hour chart and moving inside the ascending channel previously marked.
- Price has pulled all the way back to the channel support around $740-745 after previously testing the yearly highs.
- There are several inflection points at this support zone so a bounce could be due, and technical indicators are suggesting that buyers are about to return.
Bitcoin price is testing the ascending channel support visible on the 4-hour time frame and could be gearing up for another rally.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA on this time frame, confirming that the path of least resistance is to the upside and that the climb could resume. In addition, the 100 SMA lines up with the channel support, adding to its strength as a floor.
Stochastic is already in the oversold area and is starting to turn higher, possibly indicating a return in bullish pressure. Meanwhile, RSI is still treading lower to show that there’s bearish momentum left and might be enough to push bitcoin price to test the 200 SMA dynamic support on a larger correction.
Stronger selling pressure could trigger a downside break of support and a move towards the