Bitcoin continues to hover around the resistance of its increasing wedge formation and may be due to an upward break. After all, the 100 SMA is starting to exceed the 200 long-term SMA to signal that the path of least resistance is on the upside.
In other words, resistance is more likely to break than to stand. In this case, the bitcoin could be on a steeper climb, possibly at the height of the rising wedge pattern. This amounts to $ 6,000 to about $ 7,400, so the resulting rally could be at least $ 1,400.
However, RSI has been near overbought territory for quite some time and may have had to go back. This could indicate a return in selling pressure and a decline in wedge support just above the $ 7,000 handle. Even the Stochastic is starting to fall after reaching overbought levels to indicate that buyers are taking a break.
The bitcoin price managed to remain supported by the lack of negative updates from last week. There have also been many key developments in other alternative sectors, keeping cryptocurrency investors in an optimistic state.
In addition, the move beyond the technical barrier of $ 7,000 was enough to encourage the bulls to stay in the game. Many believe that this could be the possibility for bitcoin to resume its strong rebound until the end of the year, possibly hitting record levels or overtaking them.
Again, traders are hovering when it comes to the SEC decision on bitcoin ETF applications since this could be the next big catalyst. Approval could mean higher volumes and assets for the coming months, which could stimulate further gains for bitcoins and for its peers
At the same time, the improvement in the general market sentiment due to geopolitical developments has also raised the appetite for risk, which was bullish for cryptocurrencies. Issues in emerging markets also make bitcoin an alternative means of conserving value.