Bitcoin price analysis (BTC): the bulls are back!

Bitcoin had already tended to drop in a descending channel but had just overtaken the resistance to indicate that an inversion was required. The price also closed above the dynamic inflection point of 100 SMA, which constitutes an additional upward signal.

However, the 100 SMA remains below the 200 SMA in the longer term, indicating that the path of least resistance is decreasing. In other words, the downtrend is more likely to resume than to reverse. Price has not yet tested the dynamic inflection point of 200 SMA, which could also lead to some downward pressure.

RSI has also reached the overbought zone to indicate that buyers are starting to feel exhausted. Likewise, over-buying is stochastic to indicate that buyers might want to take a break. A lowering could confirm that sellers are about to take over, possibly pushing Bitcoin back into the channel and at the lows.

Nevertheless, it should also be noted that the two oscillators are moving upwards and have not yet shown a tendency to move south. This suggests that the bulls could continue to charge.

In addition, bitcoin is forming a double bottom with the last move and could test the cleavage at $ 4,200. A break beyond this limit could generate a rally the same height as the chart model, which is around $ 400. The intensification of the uptrend could lead to technical breaks in the next areas of interest, likely to attract even more buyers.

Indices that institutions continue to invest in cryptography despite the recent bear market are reaching the media. The confirmation by some key figures of the sector also led to the improvement of the feeling which is probably at the origin of the recent movements.

For one, Bloomberg reported:

Before launching the contracts, Nasdaq was striving to address the concerns of its main US regulator, the Commodity Futures Trading Commission (CFTC).

The New York exchange operator, which for the first time was planning to steer the Bitcoin futures last year, wants to clear the deal as of the first quarter of 2019.