Bitcoin Price Key Highlights
- Bitcoin price recently surged past its symmetrical triangle resistance to signal that an uptrend is underway.
- Price found resistance around $7,800 and appears to be pulling back to the broken triangle top.
- If this area holds as support, price could aim for the Fibonacci extension levels next.
Bitcoin price is in the middle of a pullback from its upside breakout and could set its sights on these targets next.
Technical Indicators Signals
The moving averages are still oscillating to reflect sideways price action and barely offer any strong directional clues. Stochastic is still heading south to show that there’s some selling pressure left and that a deeper correction to the actual triangle top might be underway. RSI has more room to slide to also signal that a larger correction is due.
But if the current levels hold, bitcoin price might resume the climb to the Fibonacci extension levels from here. The 78.6% extension is in line with the swing high around $7,815 while the 61.8% level is closer to the $7,500 major psychological resistance. The full extension is located at the $8,134.2 level.
Bitcoin price got a huge boost from the panic selloff in Tether, which is a stablecoin pegged to the value of the US dollar. This raised questions on the security and legitimacy of Tether, leading investors to scurry to bitcoin instead.
Also, news of Fidelity’s launch of a bitcoin and ethereum platform for institutional investors was also positive for bitcoin price. This could pave the way for stronger volumes and increased activity from institutional funds, which would then encourage more retail investors to bet on the space.
This technical break could also encourage more buyers to reestablish their long positions on FOMO and revived expectations of a strong rebound before the year ends.