Bitcoin continues to hold its head above the bottom of the ascending channel on the 1-hour time frame, thanks to news that the SEC will review its latest rejection of bitcoin ETF applications. This could be enough to prop price back up to the top of the channel or the next upside targets marked by the Fib extension tool.
The 100 SMA is maintaining its lead over the 200 SMA ever so slightly, signaling that bullish momentum is present but that a crossover might be looming. If a bearish crossover happens, the price could break below the channel support and the moving averages’ dynamic inflection points.
On the other hand, a continuation of the rally could take bitcoin up to the 50% Fib at the $6,600 handle or the 61.8% extension at the mid-channel area of interest. Stronger bullish momentum could take it up to the 78.6% extension that lines up with the swing high or the full extension close to the $7,000 mark.
RSI is starting to turn lower to signal a possible return in selling pressure. Stochastic also seems ready to move back down without hitting overbought conditions, indicating that sellers are eager to jump back in. A move below the $6,500 level could be enough to confirm that a reversal is due.
Bitcoin took hits after the SEC decided to reject a set of bitcoin ETF applications filed back in December last year. The regulator cited potential price manipulation and fraud in markets tied to the securities but later on issued a letter saying that they will review this rejection decision.
This gave bulls hope again that the applications might see approval at some point or even just a longer comment period that could give rise to revisions in the proposals. Either way, it seems that the optimism of seeing approval soon could be enough to keep prices supported for the time being.
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