Bitcoin Price Key Highlights
Bitcoin price recently broke past the descending triangle resistance visible on the 1-hour and 4-hour charts.
Price zoomed up to the $400 psychological resistance as expected , but it appears to be setting up for a pullback.
Using the Fib tool on the breakout rally reveals potential levels that might hold as support in the event of a correction from the uptrend.
Bitcoin price has shown strong bullish momentum with its triangle breakout but buyers might be waiting to enter at better levels on a pullback. Potential Support Zones
The 38.2% Fibonacci retracement level appears to have held as near-term support with that quick bounce, but a larger correction to the lower Fib levels is still a possibility. The 50% level is around $390, which is also a psychological support area while the 61.8% Fib is close to the dynamic inflection points at the moving averages.
An even larger pullback could last until the broken triangle resistance near $370 and just slightly below the 100 SMA. This short-term moving average is below the longer-term 200 SMA for now, suggesting that there’s more downside, but an upward crossover seems to be brewing.
If that crossover takes place soon, more buyers could join the fold in anticipation of sustained gains for bitcoin price. Stochastic is still on the move down so sellers are still on top of their game until the oscillator reaches the oversold region and turns higher. RSI has a much longer way to go before reaching oversold levels so a larger correction is indeed possible. Market Risks The return of Chinese investors from their Spring Festival holiday and the absence of majority of US traders during yesterday’s President’s Day holiday combined forces to weigh on the safe-haven dollar. Risk appetite was in play […]
