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Bitcoin is still consolidating into its triangular pattern visible on the chart at 4 hours after being recently repelled at $ 4,200. The price seems ready for another support test that aligns with several potential inflection points.
For one, a short-term uptrend channel is forming while the price has made higher and higher highs. This coincides with the 100 SMA dynamic deflection point which is added to its strength as a support. After all, the 100 SMAs exceed 200 SMAs to confirm that the path of least resistance is upward or that support is more likely to hold rather than to break.
RSI is turning lower after having hit the overbought zone recently to signal that the selling pressure is returning. This could maintain an advantage over earnings for the time being until oversold conditions are met. Stochastic is heading south from the overbought zone to confirm that downward pressure is about to resume. Both oscillators have a ground to run before hitting oversold levels, which means that sellers could keep control for a little longer.
So far it seems that it is above all the optimism of the market to bet on bitcoins, although it is useful for the bulls to note that the currency managed to keep its head above the value of $ 4,000 for the trading day. This could be enough to support the narrative that the price has touched the bottom from its slide and is just waiting for the right catalyst for a big upward move.
Analysts also maintained mostly bullish forecasts, and minor developments were positive. For example, the Winklevoss twins have reiterated their commitment to a bitcoin ETF in a recent Reddit AMA, but of course there is a lot of work to do for them before they can see it.
Apart from this, the overall sentiment in the financial markets could determine if the bitcoin can have a higher margin for another day.
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