Bitcoin continues to crawl higher, still cruising inside an ascending channel visible on the 1-hour time frame. Price gained momentum after its bounce back above support, breaching the mid-channel area of interest and setting its sights on the top.
The 100 SMA has crossed below the longer-term 200 SMA, though, so the path of least resistance is to the downside. In other words, selling pressure could pick up from here and possibly lead to a break of support. Then again, bitcoin is trading above both moving averages to show that these could hold as dynamic support.
RSI is in the overbought region, though, so buyers must be feeling tired and willing to let sellers take over. Stochastic has some room to climb so bullish pressure could stay in play for a bit longer, but the oscillator is also nearing overbought levels. If the channel resistance holds, another dip to support may take place.
Bitcoin got a bit of a boost from the SEC order on gathering more input from the public before it reaches a decision on the ETF application from VanEck and SolidX. Keep in mind that investors are watching this ruling closely as it would indicate an influx of funds into bitcoin.
Besides, it could also set a precedent for other bitcoin-based products and even other crypto-backed securities. It would also show that the regulator is being more welcome to developments in the industry, encouraging even more liquidity and activity.
However, it’s also possible that the regulator could extend its decision period in order to conduct a more thorough review. Recall that it decided to review an earlier rejection then temporarily suspended trading in Bitcoin Tracker One soon after, citing “confusion among market participants” on the financial instruments.