Bitcoin is trading higher inside a rising wedge but is also approaching the top of a longer-term falling wedge. The resistance areas nearly coincide, so there may be some selling pressure at the $7,500 area.

However, the 100 SMA just completed a bullish crossover from the 200 SMA to signal that the path of least resistance is to the upside. This means that the rally is more likely to resume than to reverse. A break past the short-term wedge could lead to a rally of the same height or even one that’s the same size as the larger wedge better seen on the daily time frame.

RSI appears to be sliding from overbought levels, though, suggesting a return in selling pressure and a possible bounce off the top. Stochastic was on the move down but changed its mind halfway through, indicating that buyers keep putting up a fight.

Levels to watch out for include the bottom of the wedge at $7,000 as a break lower could pave the way for a slide back to the longer-term support. It’s also worth keeping tabs on $7,500 for a break higher.

Bitcoin is staying afloat thanks to bullish estimates released recently, drawing more and more bulls on account of FOMO or fear of missing out on a potentially big rally. Some say that this sentiment might be enough to sustain the anticipated rebound for the year that might take bitcoin to its record highs or higher.

Still, traders are keeping an eye out for the SEC decision on bitcoin ETF applications, with some worried that it could lead to similar price action after futures were launched last year. In any case, the focus on futures is on ethereum as a perceived selloff after the CBOE launch is drawing traders out of ethereum and onto bitcoin, adding more support for price.