[Market Analysis] Bitcoin support rebounds-British issues drive the bull market back

Recent new problems in the UK financial sector have pushed up the price of Bitcoin, adding to traders' pricing uncertainty.

Key points :

Bitcoin rebounded from recent support levels, and the bull market began to return.

It seems that the Bitcoin price is moving towards an ascending channel on the hourly chart.

Currently, the price is still hovering in the middle profit taking zone, waiting for the bullish momentum to increase.

Recent new problems in the UK financial sector have pushed up the price of Bitcoin, adding to traders' pricing uncertainty.

Technical indicators

The 100-day simple moving average (SMA) is above the 200-day SMA, indicating that the lowest resistance level is still rising. This suggests that the price of Bitcoin may be able to gain enough strength to return to the top of the channel, which is around $700 to $710. A strengthening bull market may allow the price to break through the recent high of around $800.

The RSI is rising, confirming that the bears are controlling the price of Bitcoin. The Stochastics is also moving south, so the price of Bitcoin will follow suit. The 200 SMA is also an active dynamic index and may continue to act as a support level.

Bitcoin technical analysis: UK issues drive bull market return

Market Dynamics

New troubles in the UK financial sector have caused risk aversion to return to financial markets, and many investors have begun to put their money into areas that government agencies cannot control. Three of the UK's top real estate funds have announced that they will suspend redemptions, which means that investors cannot withdraw and a large amount of funds will be frozen.

This has caused concerns in the banking sector about the spread of the European debt crisis, as many small businesses and banks use commercial real estate as collateral and capital buffers, so a sharp drop in prices may lead to huge losses. The Bank of England has tried to reassure everyone through its financial stability report, saying that banks have passed stress tests, although there will be more capital conflicts in the next few days.

As a result, traders will move their money elsewhere, and the price of Bitcoin is likely to continue to rise. ECB President Draghi’s speech and the US Federal Open Market Committee’s meeting minutes are due to be released today, adding more volatility to the financial market.