Bitcoin found support at the bottom of the newly-forming ascending channel on its 4-hour time frame, setting its sights on the next upside targets. The first one is at the mid-channel area of interest around $7,000 then the next might be at the very top around $7,600.
The 100 SMA is below the longer-term 200 SMA, though, so the path of least resistance might still be to the downside. In other words, there’s still a chance that the selloff could resume from here. Then again, Bitcoin has broken past these dynamic inflection points as an early signal that bullish pressure is picking up.
Stochastic is still pointing up to suggest that bullish momentum could stay in play, but the oscillator is nearing overbought levels to indicate exhaustion. Turning lower could bring a return in bearish momentum and another dip to the channel bottom around $6,400.
RSI is also heading higher to confirm that buyers have the upper hand. However, it is also approaching the overbought zone to suggest that bullish momentum might fade soon.
Bitcoin price enjoyed a strong boost from a Morgan Stanley report reflecting strong institutional interest in the cryptocurrency. This comes ahead of the expected influx in institutional volumes through Fidelity’s platform for Bitcoin and Ethereum early next year.
This move is also supported by returning risk appetite in general financial markets as risks related to Brexit, Italy’s debt, and the US elections seem to be taking the back seat. Optimism at the start of the month was seen and, if sustained, it could usher in the expected Bitcoin rebound before the year comes to a close.
Other industry updates are also seen in a positive light, with the anticipated SEC guidelines on ICOs also likely to weed out fraudulent tokens from legitimate ones, enhancing investor confidence.
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