Bitcoin Price Key Highlights
- Bitcoin price has broken past the neckline of a short-term double bottom to signal that an uptrend is underway.
- Price is also in the middle of forming a longer-term double bottom visible on its 4-hour chart.
- Bitcoin has yet to test the neckline on this larger reversal formation at the $7,400 level.
Bitcoin price has confirmed its short-term double bottom but has yet to complete a larger one to signal a longer-term climb.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA on the 4-hour time frame to signal that the path of least resistance is to the downside. In other words, there’s a stronger chance for the selloff to resume from here.
However, price has climbed past the 200 SMA dynamic inflection point to signal that bullish momentum is picking up. Besides, the moving averages might simply be oscillating to reflect consolidation.
RSI is on the move down after recently hitting overbought levels, signaling that sellers are taking control of bitcoin price action while buyers take a break. Similarly stochastic is on the move down to reflect the presence of bearish pressure. With that, bitcoin could still revisit the lows around $6,200.
BTCUSD Chart from TradingView
Still, sentiment has been mostly positive as traders are drawing hope from the SEC decision to yet again prolong the comment period for bitcoin ETF applications. For many, the regulator’s decision to refrain from a rejection suggests that there’s still a possibility for an approval later on.
With that, speculations for a strong rebound before the year comes to a close are still in play. Any indication that an approval for the VanEck/SolidX bitcoin ETF could lead to positioning ahead of any official announcements as traders are keen on not getting left behind any major rallies. On the other hand, hints that a rejection may be in order could lead the slide to resume.
