The BTC/USD pair is at a very critical juncture right now. Making the all-important higher high at $65,050, or rolling over and falling below $63,900 could impact the $BTC price for the short to medium term.
Huge market forces control the Bitcoin price
There are huge forces that eventually decide the larger movements in the Bitcoin price. These market forces are beyond the ken of the average retail traders, and the $BTC price going up or down a few hundred dollars here and there is not what matters.
However, technical analysis certainly does have its place, and there’s no doubting the importance of $BTC making a higher high at this stage of its come-back.
Essential for bulls to maintain upside momentum
Source: TradingView
The short term time frame shows that currently, the $BTC price is battling to stay inside the ascending channel. Already, the price has dipped out of the channel on a few occasions, only for the bulls to force it back inside. Now, as the price is just a very short distance from the prize of that higher high, it is essential that the upside momentum is maintained.
Rejection at the 0.618 Fibonacci?
Source: TradingView
Moving out into the daily time frame, it can be seen how the $BTC price is still meandering within the bull flag channel. However, it can also be observed that the price is currently being rejected from the 0.618 fibonacci. This is the fibonacci level taken from the whole move since the $73,800 all-time high. So, once more, the critical juncture the price is at can be comprehended. It should also be noted that the Stochastic RSI for the daily is rolling over, signifying that price momentum is starting to decrease.
Longer term $BTC price still positive
Source: TradingView
In the weekly time frame everything still looks very positive. The Stochastic RSI for this time frame is indicating strong momentum, and the Relative Strength Index, another momentum indicator, is signalling a break of the downtrend, as long as the indicator line stays above the descending line, and can make a higher high by the end of this week.
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.
