The Bitcoin bulls have perhaps found a decent platform at $118,000 from which to launch their next upward surge. However, before this next rocketship takes off, there could be more sideways price action. Investors will probably need to remain patient.
Crypto bills passed up to the Senate
The crypto story continues to gain momentum in the US as three landmark bills gained approval in the House this week. The GENIUS Act, CLARITY Act, and CBDC Anti-Surveillance State Act were all passed on to the Senate for consideration.
If these bills do make it into law this will firm up the case for crypto in the most powerful country in the world – quite a rapid turnaround from the bleak and unyielding anti-crypto stance presented by the Biden administration.
While the CLARITY Act will help to provide consumer protection and clear regulatory guidelines for businesses, and the GENIUS Act will promote the setting up of regulation for stablecoins, arguably the most impactful bill is the Anti-CBDC Surveillance State Act.
Anti-CBDC Act the most important
CBCD’s (Central Bank Digital Currencies) have generally been kept on the down-low in mainstream media for quite some time, and it’s only in recent times that the likes of European Commission President Ursula von der Leyen, and others, have felt emboldened enough to announce the future implementation of CBDCs.
This programmable digital currency would allow central banks to wield far more power over citizens than they already have, allowing them to manipulate, confiscate, and sanction bank accounts at will.
$BTC retests support
Source: TradingView
Meanwhile, Bitcoin continues on into the latter stages of its bull market. As can be seen in the short-term time frame, the price broke out of the relatively short downtrend but the bulls were unable to maintain momentum and the price is falling back down.
The trendline is about to be tested again, and possibly the horizontal support at $118,000. If this gives way and the bears are able to confirm the breakdown, $117,000 down to $116,000 would be a possible net waiting to catch the price. Falling below that would mean a collapse back down to $112,000.
That said, as things stand, this looks as though it may just be a retest of support. As has been the case for quite some time now, the trend is up, and if in doubt, go with that trend.
$BTC volatility increase
Source: TradingView
The daily chart shows a lot of volatility since $BTC crossed above $118,000. The candle wicks to the up and to the downside are evidence of the struggle going on among the bulls and the bears. This support level is continuing to hold, but as already mentioned, a collapse, or even just a wick back down to $112,000 could still be on the cards.
At the bottom of the chart, the Relative Strength Index (RSI) which signals overbought and oversold conditions, is key to further price appreciation. The indicator has already been well into the overbought zone, but it still did not get above the last peak at 78.29.
The indicator will probably need to bounce off of the yellow moving average and head higher to take out that last peak, if this doesn’t happen, bearish divergence is still in play.
Weekly Stochastic RSI indicators approach a top again
Source: TradingView
The weekly time frame reveals that generally all is well with the Bitcoin bull market. That said, the Stochastic RSI indicator lines are approaching the top again. There could be two or three weeks left in them yet, and there’s always the chance that they could move along the top for quite some time. However, when they get this high it is best to keep an eye open for any other potential topping signals.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
