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Bitcoin has recently crossed the summit of a symmetrical triangle consolidation model to signal that bulls are in control. However, resistance around $ 4,300 is maintained and the price has returned to the broken resistance.
This could be a much needed retracement from the recent ascent, and continued support could allow more buyers to participate. The application of the Fibonacci extension tool to this watch movement is close to the $ 4,400 mark. An upward momentum could reach 78.6% to $ 4,525 or complete expansion just after the $ 4,700 mark.
The 100 SMA is still above 200 SMA in the longer term to confirm that the path of least resistance is on the rise. This means that support is more likely to be sustained than broken. The gap between moving averages widens to reflect a bullish momentum, but the bitcoin fell below the dynamic inflection point of 100 SMA.
RSI, however, fell into the oversold zone, indicating that sellers could be exhausted and ready to let buyers take over. The stochastic is also plunging into the oversold territory to suggest that bears could pause here. Sustained sales pressure could lead bitcoin to next support at 200 SMA, near the bottom of the triangle.
The cause of the fall has not been obvious, so many people think that it's going to come up with profits at key resistance levels in anticipation of larger movements in the coming days. Analysts have given more optimistic forecasts on the substance of bitcoin, with some saying that an additional dip of $ 1,000 or even less than $ 2,000 could be unlikely.
In addition, sentiment could drive further gains as all eyes are on Fidelity's upcoming launch of its institutional platform. However, any problem could mean more troughs in price action.
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