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Bitcoin bulls passed the $ 6,600 short-term resistance to push the price to $ 6,900 before retiring. Applying the Fibonacci retracement tool on the latest highs and lows swing shows where other buyers might be waiting to enter.
In particular, 61.8% of Fibonacci aligns with the broken resistance and the rising trendline linking the lows since August 14. This is also just above the dynamic inflection points of the moving averages.
In terms of moving averages, the 100 SMA is above the 200 long-term SMA to indicate that the path of least resistance is on the upside. In other words, the upward trend is more likely to resume rather than reverse.
However, RSI is already pointing to overbought conditions and may be due to a lower turnaround to signal a return in selling pressure. Stochastics has not yet reached the overbought territory but it also seems ready to head south, so bitcoin could follow the example.
The highest pop today is focused on the anticipation of the SEC sentence on the bitcoin ProShares Question of the ETF of August 23rd. Unlike the other questions set aside until the end of September, the regulatory authority can no longer extend the deadline on this as it was filed in December of last year.
The approval could bring even more earnings for bitcoins and its peers as this could create the expectation of a similar decision in other applications. This could also mean more liquidity and more activity for bitcoin operations. Denial, on the other hand, could force Bitcoin to return its recent victories.
Risk sentiment is also a general factor to keep an eye on, as there has been a lot to do in terms of commercial talks and geopolitical risks. Turkey seems to have taken the back seat for now and the central bank's commitment to action seems to have sparked a little calm.
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