Bitcoin (BTC) Price Analysis: Buyers to Defend Channel Floor?

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Bitcoin is still trending higher as it forms higher lows and higher highs inside an ascending channel. Price is still hovering close to support, though, so traders might be deciding on a bounce or a break.

A bounce could take bitcoin back to the channel top and latest highs around $4,300 while a break lower could spur a reversal from the uptrend. The 100 SMA is above the longer-term 200 SMA, though, so the path of least resistance is to the upside. In other words, support is more likely to hold than to to break. These moving averages are also close to the channel support to add to its strength as a floor.

RSI is heading down to signal that selling pressure is in play. This could be enough to spur a break below the $3,800 area and sustain a slide to the next area of interest. Stochastic is also heading lower after reaching the overbought zone, indicating that buyers are exhausted and willing to let sellers take over.

Bitcoin is struggling to sustain its recent rallies as buyers are waiting to get more developments in the industry. There is still some positive sentiment and anticipation for institutional investment but these expectations will have to be met with actual updates in order to give the rallies any traction.

The lack of any significant updates this week could force bulls to give way to bears and spur deeper pullbacks to longer-term inflection points. Forecasts seem more mixed these days, with some maintaining the near-term $5,000 estimate and others predicting that it could fall as low as $1,850 if support levels break.

Reports also revealed that revenues of bitcoin miners have fallen to new lows in February, down 10% since the start of the year. The latest research of Diar also reports:

“Bitmain’s latest flagship miner that began shipping at the start of the year, the s15, has already sold out twice-over with the next batch set for shipment in April.”

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