Bitcoin is treading sideways once more in what appears to be a small range or channel. This price action was already exhibited a few days back, before an upside breakout ensued.
The same could be the case this time since the 100 SMA is still 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 resume than to reverse.
In addition, the gap between the moving averages is widening to reflect strengthening bullish momentum. The 100 SMA appears to have held as dynamic support in the recent dip as well.
With that, a break past the $8,300 level could be enough to signal bullish confirmation and set off a rally that’s roughly the same height as the earlier one, which spanned $7,300 to $8,500.
RSI is still treading sideways, barely offering any strong directional clues. Stochastic has been on the move lower but is turning back up halfway through to show that buyers aren’t going down without a fight. Still, a move below the current consolidation could draw support at the earlier area of interest above $7,200 or the 200 SMA dynamic support at $7,000.
Bitcoin traders are holding out for the next set of catalysts to see if the rallies could be sustained. There have been minor updates, such as the recent poll from Gallup which revealed that retail investors are mostly wary of bitcoin risks but remain interested in the space.
Bullish momentum appears to have hit a snag when the SEC delayed its decision on bitcoin ETF applications. Investors seem hungry for more positive updates, though, and are still welcoming regulatory developments from an optimistic standpoint. Meanwhile, the dollar could take its cues from the upcoming FOMC statement and NFP release.