Bitcoin is still hovering around the top of its ascending channel on the 1-hour time frame but looks poised for a break higher. Price encountered stronger volatility in the past 24 hours, possibly completing a quick pullback to the nearby area of interest.
Price already seems to have bounced off the middle of the channel and the $4,000 major psychological mark. This could put it on track towards testing the top around the $4,150 level and 50% Fibonacci extension next. Stronger bullish momentum could take it up to the 61.8% level at $4,200 or the 78.6% level closer to the $4,300 mark. The full extension is located at $4,392.4.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. However, the 100 SMA seems to be topping out and might narrow the gap with the 200 SMA to reflect slowing bullish momentum. Price also seems to be dipping below the 100 SMA dynamic inflection point.
If selling pressure persists, bitcoin could retreat as low as the bottom of the channel near the 200 SMA dynamic inflection point at $3,900. RSI is turning higher, though, so buyers might be ready to jump back in and sustain the climb. Stochastic is already approaching the overbought zone, possibly reflecting exhaustion among buyers and a return in bearish pressure.
Comments from Elon Musk and Jack Dorsey are being seen as the main culprits for the tossing and turning of price recently. Musk even joked about how Satoshi Nakamoto deserves a Nobel Prize.
In a podcast interview, Musk said that bitcoin design is “quite brilliant,” adding:
“[Cryptocurrency] bypasses currency controls…paper money is going away. And crypto is a far better way to transfer value than pieces of paper, that’s for sure.”
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