Bitcoin continues to consolidate inside an almost symmetrical triangle pattern on the 4-hour time frame. Price recently bounced off the top and could be due for another test of support.
There is some bullish pressure at the bottom of the short-term ascending channel, though, so Bitcoin could attempt another upside break from the $6,750 resistance. However, the 100 SMA is still below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, support is more likely to break than to hold.
If the bearish pressure is strong enough to trigger a break below the triangle bottom around $6,250, Bitcoin could tumble by the same height as the triangle, which spans $6,000 to around $8,500. Similarly, a break past the resistance could lead to a climb of the same size.
Stochastic is pulling up to indicate that bulls have the upper hand and could keep pushing for gains. Similarly, RSI is pointing north to indicate that buyers are in control and could keep lifting bitcoin price until overbought conditions are seen.
Bitcoin is on relatively stronger footing these days as the SEC refrained from doling out a rejection of the Bitcoin ETF applications so far. In addition, the launch of bitcoin futures on the ICE is also something a lot of investors are looking forward to as it could make the digital asset more accessible to even more traders. It also helps that Google will be lifting its ban on Bitcoin and ICO ads by October.
However, the search engine will be approving ads only from regulated entities in the US and Japan, representing a smaller than usual segment of the market. Still, this could do a lot in terms of reviving general interest in the space, paving the way for more institutional and retail funds to flow in.
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