Bitcoin looks ready to resume its climb as support on its ascending channel kept losses at bay. The Fibonacci extension tool gives a more precise view of where upside targets might be located.
In particular, the 50% level might contain some take-profit orders as it lines up with the mid-channel area of interest around $6,700. The 38.2% level is close by and in line with the dynamic inflection points at the moving averages.
Stronger bullish momentum could take it up to the 78.6% extension near the channel resistance of $6,900 or the full extension at $7,074.9. Stochastic is still moving higher to reflect the presence of bullish momentum but is closing in on the overbought zone to signal exhaustion. Turning lower could lead to a pickup in selling pressure and a decline in Bitcoin price.
RSI, on the other hand, has a lot of ground to cover before hitting overbought levels. This could keep buying momentum in play for much longer or at least enough to reach the nearby upside targets.
Bitcoin appears to be recovering from a weak start for the week, which has been mired by the hack on MapleChange and dips on futures settlement at the end of the month. A few negative remarks were also made by former Fed Chairperson Yellen and JPMorgan CEO Dimon.
But now that a fresh month is underway, optimism seems to be returning to the markets. Besides, traders are also anticipating the launch of Bitcoin futures on ICE Bakkt and this might bring increased volumes and activity. Of course, some degree of uncertainty is still in play as CME Bitcoin futures have previously been blamed for the decline in Bitcoin late last year.
Nonetheless, risk-taking in general financial markets may have also spilled over to cryptocurrencies as easing geopolitical risks from a trade war and a “no deal” Brexit are in play.
Images courtesy of TradingView
