Bitcoin is still hovering around the mid-channel area of interest visible on its 1-hour chart but might need another dip to the channel bottom before heading any further north.
The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. The 200 SMA also lines up with the channel bottom to add to its strength as a floor, but a break lower could set off a reversal from the short-term uptrend.
RSI is pointing lower, though, so selling pressure might still pick up from here. Stochastic, on the other hand, is on the move up so price might follow suit as buyers are in control. Turning lower, however, could spur a short-term dip.
Traders seem to be waiting for the next big catalyst for bitcoin and financial markets as a whole, although it’s worth keeping in mind that bitcoin has been trailing risk assets and gold these days. In other words, risk rallies also tend to benefit the altcoin while flight to safety spurs a selloff.
Then again, note that in times of economic crisis or at least a credit crunch, bitcoin also tends to be the proxy safe-haven as it could retain value and even enjoy stronger demand, unlike other assets. Also, bitcoin is approaching its halving in a few months and extended lock downs in major economies could spur even stronger demand for the cryptocurrency ahead of a potential doubling of its value.
The dollar is also under a bit of weight these days as the stimulus package approved by US officials appears to be too little too late in terms of keeping the impact of the coronavirus crisis contained.
Images courtesy of TradingView
