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Bitcoin is still gaining traction on its rebound and breakout from a short-term fall wedge model. This could put him on the right track for a big retreat on his long-term slide, maybe even to start a reversal.
The application of the Fibonacci retracement tool on the latest high and low fluctuation shows that the 61.8% level is aligned with a previous support from $ 6,000 to $ 6,100. This is also in line with the 200 SMA dynamic inflection point, which could be the line in the sand for a pullback. The 100 SMA approaches 38.2% of Fib at the psychological level greater than $ 5,000.
The 100 SMA is less than 200 longer-term SMAs to confirm that the path of least resistance is downward. In other words, the selloff is likely to resume rather than the other way around. This also suggests that any level of Fib could keep gains under control, especially since the gap between moving averages is widening to reflect increased selling pressure.
RSI is heading north to show that buyers still have control. The oscillator has plenty of room to climb before indicating overbought conditions or exhaustion between the bulls. This means that buyers could continue to drive price action shortly and bring bitcoins at least as close to the Fib.
The Stochastic is also aiming for the top after just pulling out the oversold region, reflecting a fresh upturn in the bullish phase. This oscillator also has plenty of ground to cover before seeing the conditions of overbought.
The news that the great short position of the former IMF economist Mark Dow was closed led traders to think that he could see a minimum bitcoin price. This probably caused a flurry of long positions as a rebound could be in the works from here.
In addition, Spencer Bogart, partner of Blockchain Capital, noted in an interview with CNBC Money that now is a fantastic time to buy bitcoins. Greater coverage of these bullish forecasts could further increase earnings.
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