Bitcoin is still trading within an ascending channel on the hourly chart, with current price action showing a rebound from the channel’s lower boundary. The cryptocurrency is currently trading at $94,921, indicating a recovery from the recent dip to around $93,000.
The ascending channel formation has been active since late April, with clearly defined upper and lower boundaries. After testing the lower support around $93,000, Bitcoin has bounced back, suggesting bullish sentiment remains intact in the short term. The next significant resistance lies at the upper channel boundary near $96,000.
Moving averages are providing additional confirmation of the bullish bias. The 100 SMA (blue line) is positioned above the 200 SMA (red line), signaling that the path of least resistance is to the upside. These moving averages are also serving as dynamic support levels, with the 100 SMA recently helping to halt the downward movement.
Oscillators And Momentum Indicators
The stochastic oscillator has recently moved up from the oversold territory, suggesting increasing buying pressure. The indicator is now approaching the overbought zone, which could mean a temporary pause in the uptrend if it turns lower. However, the strong upward trajectory of the stochastic lines indicates that bulls are currently in control.
In the lower panel, we can observe the MACD (moving average convergence divergence) indicator showing a potential bullish crossover as the blue line appears to be crossing above the signal line. The histogram bars are also turning positive, confirming the building bullish momentum.
Volume activity supports the recent upward movement, with green volume bars expanding as price climbs higher. This suggests genuine buying interest rather than a mere technical bounce.
Bitcoin Price Targets
For traders looking to enter long positions, the mid-channel area around $94,000-$94,200 could provide opportunities on pullbacks. More conservative traders might wait for a retest of the 100 SMA before entering. Short-term targets include the previous swing high at $95,000, while the channel top near $96,000 represents a more ambitious target.
On the downside, a break below the lower channel boundary and the 200 SMA would invalidate the bullish outlook, potentially sending Bitcoin toward support around $92,000. However, as long as price remains within the ascending channel and above key moving averages, the technical outlook for Bitcoin remains cautiously bullish in the short term.
From a fundamental perspective, Bitcoin continues to draw support from institutional interest and expectations around US President Donald Trump administration’s crypto-friendly policies.
Recent fluctuations may be attributed to profit-taking after the impressive rally since mid-2023, but the overall market structure remains positive. Traders should keep an eye on upcoming economic data releases and any regulatory developments that could impact crypto markets in the near term, as these could trigger significant volatility despite the currently favorable technical setup.