Bitcoin is still trending higher in its ascending channel as the price recently dipped to support, which was defended strongly by bulls. This lined up with the 61.8% Fibonacci retracement level and the $4,000 key psychological mark.

With that, Bitcoin could set its sights back up on the swing high around $4,170 or the channel top closer to $4,200. Stronger bullish momentum could lead to an upside break of resistance and a steeper climb.

However, the 100 SMA is below the longer-term 200 SMA on this time frame to signal that the path of least resistance is to the downside. This suggests that there’s still a chance for a break below the $4,000 support and a reversal from the climb. For now, the price is testing the 200 SMA dynamic resistance and a break higher could put the odds in favor of bulls.

RSI is pointing up to indicate that bullish momentum is present, but the oscillator is also testing the overbought region to signal exhaustion. Similarly stochastic is in the overbought territory to indicate that buyers could use a break and let sellers take over. In that case, another dip to the channel bottom could follow.

Cryptocurrencies are generally higher over the past 24 hours, possibly boosted by an improvement in sentiment or buy orders being triggered at key levels. Price action over the next 24 hours could be crucial as it would determine whether the buying interest is short-lived again or not.

The $4,000 barrier will still be of interest as any breaks below this could also trigger short entries and might even revive FUD. Nonetheless, analysts have been generally positive about the recent price rally, keeping their sights on the $5,000 to $5,500 areas which some say could be hit by May.

Experts like Garrick Hileman, head of research at Blockchain and research associate at the London School of Economics, cite bitcoin regulation as a likely positive catalyst since this could further legitimize the industry.

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