Bitcoin bulls sprang back to action to defend the area of interest that lines up with a short-term rising trend line and a retracement level. If stronger buying momentum returns here, the price could aim for the Fib extension levels next.

The 100 SMA is safely above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that the uptrend is more likely to gain traction than to reverse. The 200 SMA is also close to the area of interest to add another layer of support in the event of a larger dip, but bitcoin is currently below the 100 SMA to hint at some bearish pressure.

RSI is slowly turning higher after briefly dipping to the oversold region. This suggests that buyers are taking over but at a cautious pace. Still, it might be enough to lift price back up to the swing high that lines up with the 61.8% Fib or at least until the 38.2% level that coincides with an area of interest.

Stronger bullish momentum could lift Bitcoin to the 78.6% level at $4,452.40 or the full extension at $4,641.30. Stochastic is already moving north so the price might follow suit, but bullish pressure could fade one this oscillator hits the overbought zone and turns back down.

Bitcoin seems to have gotten a kick from positive commentary by no less than Apple’s Steve Wozniak and Tesla’s Elon Musk. Both remarked on the structure and potential for the digital asset in separate interviews recently.

This feeds into the improved sentiment in the industry over the past month, which led analysts to call a bottom in prices. Although the “$5,000 in ten days” target wasn’t reached, a sustained rebound could be fueled by rising institutional investment if Fidelity’s platform launch pushes through next month.

Images courtesy of TradingView