From some degree of panic among Bitcoin traders at $98,300, the $BTC price rebounded strongly on Monday to touch $106,000. With a somewhat patchy ceasefire now in force, there could be a calming of tensions in the Israel/Iran conflict. Will Bitcoin continue its latest rally?
U.S. stock market: It’s like nothing happened
Source: TradingView
For the U.S. stock market it might have been that there was no escalating conflict in the Middle East. A strong trading day took the S&P 500 past the 6,000 point resistance with a near 1% move higher. As can be seen in the daily chart above, if the bulls can consolidate the price above 6,000, an all-time high will not be far away.
That this recovery over the last few weeks has taken place amid huge geopolitical tensions and all the Trump tariffs repercussions says much for the inexorable march of increasing global liquidity.
$BTC price shoots up to tag $106,000 resistance
Source: TradingView
The short-term time frame for $BTC reveals how the price shot up though resistance levels, flipping them into support, and how it just managed to touch the major resistance at $106,000 before falling back.
Really, all this means is that the sideways price action has been regained, and any thoughts that the bears might have had to drag the price down much further have been stymied, at least for now.
Now that the price has been rejected from $106,000, it may be that it turns back down as the short-term Stochastic RSIs seek to reset once again. This could take another few days. If the pullback is not too deep, this will give the bulls the chance to take out the $106,000 resistance on the next upward impulse.
Bullish descending channel on daily time frame
Source: TradingView
Moving out into the daily time frame it does look like a large descending channel may have formed. This is generally a bullish candle pattern and the price has a greater expectation of exiting from the top rather than the bottom of the channel.
Looking at the Stochastic RSI for the daily, it can be seen that the indicator lines are rising nicely from the bottom, indicating positive price momentum. At the very bottom of the chart is the RSI. This is showing that the indicator line has crossed above the yellow moving average line and could be about to cross up through the downtrend. Success or rejection could depend on today’s price action.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
