Sunday, June 16, 2024

    Bitcoin Price Technical Analysis – Bulls Are Returning!

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    Bitcoin Price Key Highlights

    • Bitcoin price looks ready to resume its climb and the Fib extension levels show how high it can go.
    • Price is currently testing the 38.2% extension and could still make its way up to the ascending channel resistance.
    • Technical indicators are reflecting bullish momentum but could also be hinting at rally exhaustion soon.

    Bitcoin price has bounced off its mid-channel area of interest and is resuming the climb to the resistance.

    Technical Indicators Signals

    The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This means that the rally is more likely to resume than to reverse. Also, the 100 SMA recently held as dynamic support.

    The gap between the moving averages is narrowing to signal weakening bullish momentum. Stochastic is on the move up but is closing in the overbought level to indicate that buyers are feeling exhausted and may let sellers take over. RSI is also heading north and is approaching the overbought area.

    If sellers return, a deeper pullback could be underway, taking bitcoin price to the 200 SMA dynamic support or the channel bottom at $15,000. Stronger selling pressure could lead to a downside break of the channel support and a prolonged selloff for bitcoin price.

    On the other hand, a sustained bull run could take it up to the 50% extension at $17,728.38 or the 61.8% extension near the channel resistance at $18,23.31. The 76.4% extension is located at $18,862.54. The full extension is at $19,876.41, close to the closely-watched $20,000 handle.

    CME is moving close to launching its own bitcoin futures, which is expected to bring more investor interest. A number of funds have also included bitcoin futures in their portfolios while some are offering short contracts at high margins.

    Meanwhile, the dollar has been moving sideways against most of its peers lately but could draw more support once US lawmakers approve the final version of the tax bill.

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