Bitcoin is ready to resume its climb as the bottom of the ascending channel on the 4-hour chart continues to hold as a floor. Applying the Fibonacci extension tool shows these next potential upside targets.

The 38.2% level lines up with the dynamic inflection points at the moving averages so there may be some resistance there. The 50% level coincides with the mid-channel area of interest around $6,670 which previously held as support. The 78.6% level is near the top of the channel at $6,900 while the full extension is beyond this at $7,075.

The moving averages are still oscillating and have yet to catch up on the latest moves, so these indicators aren’t providing directional clues for now. Stochastic is in the move up to suggest that buyers have the upper hand, but the oscillator is nearing the overbought zone to indicate rally exhaustion. Turning back down could bring selling pressure back in the mix.

RSI is just halfway through on its climb towards the overbought area, which suggests that buyers have plenty of time to stay in control. This might be enough to take bitcoin to the closest resistance zones before profit-taking happens.

Bitcoin is coming off a rough start for the week on account of futures settlement dips and the hack on MapleChange. There were also negative remarks from former Fed head Yellen and JPMorgan CEO Dimon, but bulls seem to be brushing these off.

The start of a new month typically brings optimism back to the industry as traders await fresh developments. The report from Morgan Stanley highlights this as it pointed to the evolution in the bitcoin ecosystem towards institutional interest and stablecoin development.

Traders are also awaiting the launch of bitcoin futures on ICE Bakkt in hopes that increased volumes and activity could usher in a big rebound before the year closes.

The post Bitcoin (BTC) Price Analysis: Potential Upside Targets appeared first on Ethereum World News.

189 +