Key Highlights:
• After breaking pass its inverse head and shoulder neckline, price action has gained some traction
• Price is testing the resistance by trading within an ascending channel
• If the bears come back in, we might just see price back at the Fib level.
• After trending higher a pullback to its channel support might be in play soon.
Technical Indicator Signals:
The part of least resistance is to the upside depicted by the 100 simple moving average(SMA) over the 200 SMA. This shows that there is a high probability that the trend will likely resume than reverse.
Making use of the Fib tool, the latest swing low and high shows that the 61.8% retracement is in line with the bottom of the channel at $8,338.30 while the 38.2% retracement is close to the middle of $8,600.
Not just that the 100 SMA is over the 200 SMA to confirm that the path of least resistance is to the upside, there is also a widening of the Gap between the two moving averages indicating that bullish momentum is getting stronger.
Stochastic has been in the overbought region since and looks to turn up in return of renewed buying pressure. If things go well, Bitcoin could make a leap and break through the $9,000 mark.
Exchange platforms are reporting that buying pressure is reaching about 92% activity which is drawing more investors in a bid to avoid getting left behind in the rally. It is predicted that the price of bitcoin could surge past its 2017 high to even break above $20,000.
Traders are even willing to place bets outside of traditional assets like stocks and commodities in a renewed risk appetite. Good news from big hedge funds and acquisitions have also improved the sentiment in the cryptocurrency markets.
Short-term Outlook: Bullish
The information in this article is just for the interest of Crypto Lovers and should not be considered as investment advice. If you want to take this opportunity, then invest only what you can afford.
