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