Bitcoin attempts to reenter the upward-sloping channel

Bitcoin edged higher over the weekend, briefly reentering the upward-sloping channel. At the same time, the number of Bitcoin addresses with balances exceeding 100 BTC and 1,000 BTC increased, suggesting big speculators might not be satisfied with the price yet to unload their newly acquired tokens during the dip. Therefore, our focus is on the lower bound of the upward-sloping channel. It will be positive if Bitcoin manages to break and stay above it. The same applies to technicals like RSI, MACD, and Stochastic if they continue reversing to the upside and growing. Nevertheless, a failure of the price to get back into the channel and a decline in the mentioned technicals will raise our concerns. We will update our thoughts as things progress.

Illustration 1.01
Illustration 1.01 shows the daily graph of BTCUSD’s RSI. A breakout above resistance will bolster bullish odds for Bitcoin. Contrarily, a failure will strengthen a bearish case.

Illustration 1.02
The image above displays the daily chart of BTCUSD’s MACD. A crossover above the midpoint will be bullish, while a failure will be bearish.

Technical analysis gauge
Daily time frame = Neutral
Weekly time frame = Neutral
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.