Bitcoin (BTC) Price Analysis: New Channel Forming!
Bitcoin retreated from its pop higher and is testing the rising channel support.
Bitcoin continues to trend higher even as it sold off from the recent sharp rally. Price is testing support at the bottom of its ascending channel on the 1-hour time frame, and the Fib extension levels show upside targets. The bottom of the channel lines up with a former resistance level that appears to be adding to its strength as a floor. This is also around the moving averages’ dynamic inflection points, although bitcoin has dipped below these levels slightly. Still, the 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. Then again, the gap between the indicators is narrow enough to suggest that a bearish crossover is also possible. RSI is making its way out of the oversold area to indicate a return in bullish pressure. Stochastic is also pointing up to reflect that buyers are in control and could push bitcoin back up to the next upside targets. The closest one is the 38.2% extension at the $6,500 mark.
