Bitcoin (BTC/USD) Price Technical Analysis for September 19, 2018

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Bitcoin is still stuck inside its falling wedge pattern visible on the daily time frame and is currently testing support. Bulls seem to be defending this area quite well and might push price back up to the top around $6,600-6,800.

However, the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. The 100 SMA is also near the top of the wedge to add to its strength as a ceiling.

RSI is pulling up, though, so there may be some bullish pressure in play. Stochastic is also climbing out of oversold levels to signal that buying pressure is returning. A break past the wedge top could lead to a test of the 200 SMA dynamic resistance or a long-term rally.

Risk appetite has been supported so far this week as the tariffs imposed by the US and China were seen to be softer than expected. This has renewed traders’ demand for higher-yielding assets, including cryptocurrencies. Besides, developments in the industry, even outside of bitcoin, have also been mostly positive.

A Ripple exec was quoted citing that regulation has been a bit more friendly towards digital assets and blockchain technologies these days, reviving hopes that the SEC might rule more favorably in their bitcoin ETF decision. This is slated for later this month, and approval could usher in the highly-anticipated rebound in bitcoin and other cryptocurrencies before the end of the year.

Of course there have also been naysayers predicting that bitcoin could dip as low as $3,000 before having any chance at a strong rebound. Whichever direction this wedge breaks could provide an indication of whether a larger dip is due or if the longer-term recovery to record highs is already underway.

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