Highlights in today’s analysis
- The price of Bitcoin is gaining more traction in its ascent, as it recently bounced at the bottom of its ascending channel
- The price seems to be pointing to the average channel interest area or the highs close to the main psychological mark of $ 12,000.
- A stronger bullish momentum could take the price of Bitcoin to the resistance of the channel itself.
- The price of Bitcoin is steadily rising and remains above the support of the rising channel, but the technical indicators point to profit taking.
Important technical indicators
The 100 SMA is above the 200 SMA in the longer term to indicate that the path of least resistance is up or that the rally could continue. The moving averages are also close to the channel support to increase its strength as a floor.
However, stochastic is already in the overbought area to suggest that buyers feel exhausted. Turning lower could attract sellers back and lead to another test of channel support around $ 10,500-11,000.
RSI is going up and has not yet reached the overbought levels, but it also seems to be going down. A break below the channel support could be an early indication of a reversal of the rise.
Featured factors today
The US dollar was at a weak point in recent sessions as fears of a trade war were revived when Trump announced plans to impose higher tariffs on steel and aluminum. There was also a return to risk aversion, which weighed on stocks and commodities, but the price of Bitcoin managed to maintain its leadership.
This suggests another change in market dynamics as the price of Bitcoin seems to be gaining ground once again in risky movements. This behavior has been seen in the past when the cryptocurrency takes advantage of the geopolitical risk to provide higher returns in this type of environment.
Although regulation in the industry has also been a hot topic recently, investors seem to be betting on more positive developments, similar to Circle’s acquisition of Poloniex a few days ago.