Bitcoin made a long spike from a bounce off an area of interest visible on the 4-hour time frame. This indicates that bulls are defending this resistance turned support level quite well.
If the uptrend resumes from here, bitcoin could revisit the swing high or any of the next upside targets marked by the Fibonacci extension tool. In particular, the 61.8% level lines up with the swing high near the $4,300 mark. Stronger bullish momentum could take bitcoin up to the 78.6% level at $4,452.4 or the full extension past $4,600.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This suggests that the uptrend is more likely to gain traction than to reverse. Price could also find support at the 200 SMA dynamic inflection point in the event of another dip, although it’s also worth noting that price is moving below the 100 SMA dynamic support.
RSI is crawling higher to indicate the presence of bullish momentum. This oscillator just made it out of the oversold region, so there’s plenty of room to climb before reaching overbought levels. Stochastic is also heading north so price might follow suit until overbought conditions show that buyers are exhausted. Turning lower could signal that selling pressure is returning.
Remarks from tech gurus on bitcoin seem to have spurred the recent volatility, with founders of Apple, Tesla and Twitter all voicing support for the digital asset.
In an interview with Bloomberg, Steve Wozniak said:
“We’ve seen massive value destruction, but we’ve seen massive value creation. I had a lot of bitcoin, but never as an investor. I only had bitcoin to experiment with … and I still experiment with it on new bitcoin devices.”
Meanwhile, Elon Musk also mentioned in a podcast interview:
“I mean I think the bitcoin structure was quite brilliant. It seems like there’s some merit to Ethereum as well, and maybe some of the others.”