Bitcoin is down to the very bottom of its ascending channel on the 1-hour time frame, and a bounce could determine if a rally is about to resume. If so, the price could make its way back up to the channel top of the nearby resistance levels marked by the Fib extension tool.
The 38.2% extension is at the mid-channel area of interest around $6,600 then the 61.8% Fib is closer to the channel top and swing high at $6,800. Sustained bullish momentum could take it past the channel top and onto the 78.6% extension at $6,900. The full extension is located at $7,066.2.
The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse. However, the short-term moving average appears to be turning lower and prepping for a bearish crossover, especially since Bitcoin has recently tumbled below both indicators.
Stochastic still has some room to climb before reaching overbought levels but sellers might be eager to return as the oscillator is pointing back down. RSI, on the other hand, has a long way to go north before reaching overbought territory, which means that buyers are just getting warmed up.
Cryptocurrencies could be poised for a leg higher next month as Google lifts its ban on Bitcoin and ICO ads. Recall that the search engine previously banned these on its platform to protect consumers from potential fraud. This time, it will be approving ads from regulated crypto firms based in the US and Japan, so the scope would be relatively smaller.
Still, these countries account for the majority of Bitcoin volumes, so the reintroduction of crypto ads could revive general interest. In that case, volumes could tick further up while activity could also increase.
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