Bitcoin tumbled sharply over the past 24 hours but seems to have found some support at the bottom of its ascending channel. A bounce off this area could still allow the uptrend to resume, taking bitcoin up to the channel top or at least the mid-channel area of interest.
However, it has another near-term resistance to contend with as price is also trading beneath a descending trend line that’s been holding since mid-October. This also lines up with the Fib retracement levels which might keep gains in check. A break past the 61.8% Fib around $6,500, on the other hand, could signal a continuation of the longer-term climb.
The moving averages are oscillating to reflect range-bound conditions and have yet to catch up to the latest slide. These might also hold as nearby resistance zones since they line up with the swing high closer to $6,600.
Stochastic is already pulling up from the oversold region, though, so a return in bullish pressure may be in the works. RSI is also in the oversold area and may be ready to move north, so Bitcoin price might follow suit and climb all the way up to the channel top at $7,000.
However, sentiment has turned a bit dim on reports of a sudden outage in Canada’s MapleChange that resulted in the theft of over 900 Bitcoin. There are doubts as to what actually took place, though, as the company took down its social media accounts and website even after assuring clients that investigations are ongoing.
This puts the industry a step back in trying to establish credibility with regulators. Note that the SEC has pointed to the potential for fraud in related markets as one of its reasons for rejecting earlier bitcoin ETF applications, so the regulator might refer to this again in the next set.
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