Bitcoin is still inside its ascending channel on the 4-hour time frame and is hovering around the resistance. A pullback to the nearby support levels marked by the Fibonacci retracement tool could follow from here.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. The 100 SMA is also near the 50% retracement level and mid-channel area of interest around $8,500 to $8,700 while the 200 SMA is closer to the 61.8% Fib and channel support near $8,250.

If any of the Fib levels are able to keep losses in check, the price could resume the climb to the swing high around $9,500 or the channel top at $9,750. RSI is heading lower, however, showing that bearish pressure is in play. Stochastic is also on the move down to indicate that sellers have the upper hand, and both oscillators have room to head south before reaching the oversold region.

A wave of bullish forecasts is once again coming in for bitcoin as analysts are expecting a positive impact from the launch of Facebook’s Libra. After all, this would put the spotlight back on digital assets and likely draw more mainstream users in. Libra is said to be backed by the likes of Uber and Starbucks.

Another factor keeping bitcoin’s price supported is the “halvening” in May 2020 that could potentially double or even triple the coin’s value in the months that follow.

For Fundstrat’s Tom Lee, bitcoin could easily take out its all-time highs, given how it’s been performing lately. In an interview with CNBC, he pointed to the highs at $20,000 and even suggested that it could reach $40,000 as it could act as a “reserve cryptocurrency” of sorts while newer ones emerge.

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