Bitcoin (BTC) Price Analysis: Short-Term Bullish Pullback Levels

Bitcoin (BTC) Price Analysis: Short-Term Bullish Pullback Levels 13

Bitcoin is still on a tear but could use a pullback in order to sustain a climb. Price hit resistance close to the $4,100 mark and appears ready for a retracement to the Fib levels on the 1-hour time frame.

Applying the Fibonacci tool shows that the 61.8% level is closest to the newly-formed rising trend line and an area of interest. The 38.2% level is closer to the 100 SMA dynamic support, which might already be enough to keep losses in check. If any of the Fibs hold as support, bitcoin could resume the climb to the swing high and beyond.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The 200 SMA lines up with the rising trend line support to add to its strength as a floor around $3,750. A break below this, however, could signal that selling pressure is back and that a reversal from the climb is happening.

RSI is on the move down to confirm that sellers are currently in control and could keep the correction going. The oscillator has some room before hitting the oversold region as it is just crossing the centerline to signal momentum. Stochastic appears to be bottoming from the oversold region to turn higher and reflect a return in bullish pressure already.

Bitcoin (BTC) Price Analysis: Short-Term Bullish Pullback Levels 14

More and more analysts are calling a bottom in bitcoin as price has broken through several resistance levels and confirmed reversal and continuation patterns. This may be in anticipation for the Fidelity institutional platform launch in March that would draw more volumes from banks and big funds.

This keeps bitcoin on track towards aiming for the $5,000 target that many have been eyeing for the past week. However, the momentum appears to be slowing at this point as traders might also be holding out for fresh catalysts.