aBitcoin Price Key Highlights
- Bitcoin price has recently surged past the resistance around $7400 but might be due for a pullback.
- Applying the Fibonacci retracement tool on the latest swing low and high shows the potential correction areas.
- Technical indicators are suggesting that the uptrend could carry on from here.
Bitcoin price made a strong rally last week and more buyers could be waiting to join in on a pullback.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the climb is more likely to resume than to reverse. The gap between the moving averages is widening to reflect strengthening bullish pressure.
The 100 SMA is slightly above the 38.2% Fibonacci retracement level to add an extra support zone. The 200 SMA is closer to the 61.8% Fib and former resistance zone, making it the line in the sand for a correction. A break below the $7000-7200 region could signal that bears are getting stronger again.
Stochastic is on the move down to show that buyers are taking a break and allowing sellers to take over from here. RSI is also turning lower but nearing oversold levels to suggest that bullish pressure could return soon and push bitcoin price up to the swing high and beyond.
Market Factors
Bitcoin price has undone its drop that is seen to be spurred by the looming tax filing deadline on April 17. Traders are anticipating more gains for the cryptocurrency after the deadline passes as investors reopen their positions. Besides, Q2 ha been historically positive for bitcoin price, so it won’t be surprising if investors pile on their bets before the end of the period.
Analysts are also picking up on the rebound in bitcoin volumes, despite the recent bans in India and Pakistan. Regulatory jitters are still in play but this seems to be outweighed by the news that big hedge funds are preparing to invest more in the space.