• Bitcoin price recently surged past an area of interest and may be due for a retest.
  • Using the Fibonacci retracement tool shows where bulls might be waiting to join in.
  • Technical indicators are hinting at potential profit-taking and a continuation of the uptrend.
Bitcoin price could be due for a correction from its latest rally, and buyers are waiting to join in at the area of interest.
Technical Indicators Signals
The 100 SMA recently made a bullish crossover from the 200 SMA to indicate that the path of least resistance is to the upside. This suggests that the uptrend is more likely to resume than to reverse.
These moving averages are also close to the new ascending trend line forming on the 4-hour chart. The Fibonacci retracement levels might also keep losses at bay and draw more bullish energy. In particular, the 61.8% retracement level is closest to the rising trend line support and area of interest at $6,800.
For now, RSI is indicating overbought conditions or that buyers are exhausted from the recent climb. This could open the case for profit-taking and a dip to the Fib levels. Stochastic has also reached the overbought region and looks ready to head down, bringing bitcoin price along with it.
BTCUSD Chart from TradingView
The sentiment in the cryptocurrency industry has been mostly positive after the recent technical breaks, which were seen to be spurred by rising institutional interest. Some, however, have dismissed this as a short squeeze following the other week’s “dead-cat bounce.” Others say the rally is being sustained by FOMO among market participants.
However, it also looks like investors are treating industry regulation as a plus instead of seeing this as a reason to jump out of their holdings. More updates on this topic or on acquisitions and investments could keep bitcoin price afloat and on track for a solid rebound.