Bitcoin is trending higher on the 1-hour chart as it moves above a rising trend line connecting the lows since late last month. Price popped up to the $10,500 mark earlier on and is in the middle of a correction.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% retracement level lines up with the trend line support around the $10,000 major psychological handle. Price appears to be finding support at the 50% Fib already, though.
The 200 SMA lines up with the trend line to add to its strength as support. This is below the faster-moving 100 SMA to indicate that the path of least resistance is to the upside or that the uptrend is more likely to gain traction than to reverse. However, price has dipped below the 100 SMA dynamic inflection point to signal a return in bearish pressure.
RSI has already pulled up from the oversold region to indicate that bullish pressure is returning. Stochastic is also turning higher and might move further north, so price could follow suit. In that case, bitcoin could revisit the swing high or move higher from here.
Bitcoin continues to draw support from the pickup in risk aversion as the number of new coronavirus cases continues to advance. However, the rate of climb is slowing, still keeping many hopeful that the situation could be contained soon.
In that case, bitcoin could be poised for some profit-taking as investors put funds back in stocks and commodities. Then again, the coin is looking forward to its halving of mining rewards sometime in May, and this could bring in even longer-term gains in value.
Historical instances of halving have led to roughly double the value of bitcoin over a span of months or years, so traders could be keen on buying on dips and positioning for this event.
Images courtesy of TradingView
