Bitcoin (BTC)’s Price Could Be Defended By The Bulls – Technical Analysis
Bitcoin’s price is currently testing the ascending channel support, and it might even be due for a bounce.
This could be in line with a few inflection points that might be sufficient to keep losses in check. If the climb continues, it could lead to a test of the Fibonacci extension levels.
The technical state of Bitcoin and indicators signals
The 100 SMA is above the long-term 200 SMA to confirm that the path of least resistance is going upside.
In other words, this uptrend that Bitcoin is experiencing is more likely to continue than to reverse.
On the other hand, Bitcoin’s price dipped below the 100 SMA dynamic inflection point in order to show a bearish pressure of some kind.
The 200 SMA might be the line for a pullback because it lines up with a former resistance which was $7,500.
But, if support does hold, Bitcoin’s price could resume the climb to the close resistance levels that are marked by the Fibonacci extension tool.
According to technical analysis, the 38.2% to 50% levels are around the mid-channel area of interest, and the latter is lining up with the swing high around $8,500.
An even stronger bullish momentum could take it up to the 61.8% extension at $8,645 or the 78.6% extension at the channel resistance.
It’s also important to note that the full extension is located at $9,126.80 above the top of the channel.
Bitcoin’s price pulled back this week
BTC’s price has pulled back from its climb this week on account of profit-taking on the CME futures expiry and also the rejection of the Winklevoss Bitcoin ETF by the SEC.
The regulator also took the decision on the other Bitcoin ETF application filed in order to make more room for feedback.
Overall, the future seems bright, and Bitcoin’s price could be heading to another round of positive developments to sustain the climb.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.