Bitcoin might be ready for an uptrend as it formed a double bottom reversal pattern on its 1-hour chart. This is often seen as a classic uptrend signal, provided that price can break past the neckline around the $6,600 mark.
If so, Bitcoin could climb by around $600 or the same height as the chart pattern. The 100 SMA is above the longer-term 200 SMA to suggest that the path of least resistance is to the upside or that the rally could gain more traction. However, the gap between the two moving averages has narrowed enough to suggest that a downward crossover is imminent. In that case, bearish pressure might still return and lead to another test of the bottoms.
RSI looks prime to head south so Bitcoin price could follow suit as sellers take over while buyers take a break. Stochastic has also just made it out of the overbought region to signal a return in selling pressure. A move below the bottoms could confirm that the longer-term slide is resuming.
A pickup in risk-taking has been observed in the broader financial markets on account of softer-than-expected tariffs from both the US and China. Besides, both these announcements have been hinted at in the past weeks so the bullish moves may also indicate profit-taking. Other altcoins have reported some progress, though, so it’s possible that the positive sentiment is also helping keep bitcoin price afloat.
Looking ahead, it seems that Bitcoin bulls are taking things slow while remaining wary of the SEC ruling on bitcoin ETF applications. It looks like markets are pricing in lower odds of an approval, although there still seem to be signs of hope. An approval is being touted as a potential catalyst that could spur the much-anticipated rebound in bitcoin for the year while rejection could reflect yet another setback.