Support at the bottom of the ascending channel previously highlighted already held as support, which means that Bitcoin bulls are back in the game. Looking at the Fib extension levels next shows the possible upside targets from here.
Of particular interest is the 38.2% extension since it lines up with the latest swing high, and this usually serves as the initial take-profit point. After all, the end of the month is looming and this is usually when traders close out positions to lock in recent gains.
Stronger bullish pressure could take Bitcoin up to the channel top closer to the 50% extension at $7,200 or even the 61.8% extension at $7,300. Sustained buying momentum could lead to a break past the channel top and a steeper climb to the 78.6% extension at $7,457.70 or the full extension near $7,600.
The 100 SMA is safely above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to carry on than to reverse. The gap is even widening slightly to signal stronger bullish momentum.
RSI is also pointing up to confirm that buyers have the upper hand for now, but the oscillator is slowing on its climb and nearing overbought levels. Once it reaches that area and turns back down, sellers could take over while buyers take a break.
Similarly, stochastic is edging higher and closing in on overbought territory, so it may be ready to turn back down. If so, sellers could push for another test of the channel support and area of interest, which is around the 200 SMA dynamic inflection point.
Optimism for Bitcoin ETF application approvals appears to be propping Bitcoin price for now, along with the improvement in market sentiment due to trade developments. To add to that, the massive depreciation in the Argentinian peso might also spur demand for Bitcoin as an alternative means of payment in the region.
Images courtesy of TradingView.