Bitcoin is bouncing off support at the bottom of its ascending channel to signal that bulls continue to defend this level. If support keeps holding, price could make its way up to the next targets marked by the Fibonacci extension tool.
The 61.8% Fib might be the first upside target as it lines up with the mid-channel area of interest around $6,700. Stronger bullish pressure could take it up to the 78.6% extension at the $6,800 barrier or the top of the channel that lines up with the full extension just below $7,000.
The 100 SMA is still slightly above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. However, the gap is pretty narrow so a bearish crossover could be possible anytime soon. For now, the moving averages are also holding as dynamic support at the channel bottom.
RSI is starting to turn lower but may have one more push higher before indicating overbought conditions. Stochastic also has some room to climb but appears to be topping out and ready to head south. This could confirm that sellers are winning over and bitcoin could break below support.
Bitcoin sold off upon hearing news of the SEC rejection of bitcoin ETF applications from ProShares and Direxion, leading many to think that the regulator could reach the same decision for the next batch in September.
The regulator stated in its order that they have yet to see sufficient measures to prevent price manipulation and fraud in the market in which the security is tied to. However, the regulator soon released a letter stating that they plan on reviewing this rejection but didn’t specify when the review period would end.
With that, traders are still holding out for any indication that the SEC could soon grant approval, which would be a huge step forward for the industry.