Bitcoin once again got rejected on a test of resistance, but this simply might pave the way for a quick pullback to gather more bullish energy. Applying the Fib tool on the latest swing low and high shows where buyers are waiting.
Price is currently testing support at the 38.2% level around the $4,100 major psychological support and mid-channel area of interest. A larger pullback could last until the 50% Fib at the 100 SMA dynamic inflection point, the 61.8% level just above the $4,000 mark and the bottom of the channel in line with the 200 SMA.
On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The gap between the moving averages is widening to signal strengthening bullish momentum as well.
However, RSI is on the move down so Bitcoin might follow suit while sellers have the upper hand. This oscillator has a bit of room to go before hitting oversold levels, so bearish pressure could stay on for longer. Stochastic is also moving south to confirm that sellers are in control and could take a while before oversold conditions are met.
Still, Bitcoin has managed to maintain its uptrend for the past week, which is a promising sign for bulls. Many have waited to see if the price could hold its head above the $4,000 mark for at least 24 hours to gauge current sentiment.
So far it looks like expectations are still holding Bitcoin up as more and more analysts stand by their bullish forecasts. Minor developments have been positive, one of which is the Winklevoss twins commitment to a bitcoin ETF as recently shared in a Reddit AMA.
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