Bitcoin has formed higher and higher minimums to consolidate within an increasing wedge in its 1 hour time frame. The price is approaching the peak of its formation to signal that a breakout could occur soon.
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, it is more likely that the bearing will hold rather than break it, especially since the moving averages align with the bottom of the wedge.
The RSI is pointing down, however, there may still be some sales pressure. Even Stochastic seems ready to turn lower to signal an increase in selling pressure, even if the indicator has not yet reached the overbought levels.
A break below the $ 6,500 support could lead to a fall in the same height as the wedge, which ranges from $ 5,800 to $ 6,800. Likewise a move beyond the resistance around $ 6,800 to $ 7,000 could lead to a rally of the same size.
Bitcoin suffered some successes when the SEC denied the application of ETF applications from ProShares and a couple of other companies resumed their climb when the regulator shared plans to reexamine their own decision.
The price may now await the clues that will lead to the ruling on the next batch of ETC bitcoin applications in view towards the end of September. The indications that an approval is possible could lead to earnings for the bitcoin price that leads to the announcement, since the anticipation is usually stronger in terms of the generation of bullish bets.
However, bitcoin earnings are also hitting a roadblock as Anthony Pompliano, founder and partner at Morgan Creek Digital Assets, suggested that the price could go down to $ 3,000. He said:
"The price parabolic increases continue to take longer – each dish is measured from the last historical maximum to the new historical maximum, and the first rapid price appreciation took just over 300 days (2010- 2011) and the second took over 900 days (2011-2013) .The latest increase in the parabolic price peaked at ~ $ 20,000 (2013-2017) and it took nearly 1,500 days to complete. "