Bitcoin (BTC) Price Watch: Larger Correction in the Works

Bitcoin Price Key Highlights

  • Bitcoin price is still in pullback mode as it broke below the first Fib and may be setting its sights on the next ones.
  • Bulls could be waiting at the rising trend line connecting the lows since late June and the 61.8% Fib.
  • Technical indicators are hinting that the uptrend still has a chance at resuming at some point.

Bitcoin is still in pullback mode as it retreats below the 38.2% Fib level and might find support at the next ones.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. Also the gap between the two is widening to reflect strengthening bullish momentum.

Bitcoin price has tumbled below the 100 SMA dynamic support, though, indicating the presence of selling pressure. Price could still find support at the 200 SMA dynamic inflection point just above the 61.8% Fib.

This retracement level lines up with the $7,000 major psychological mark around the rising trend line connecting the lows since the third week of June. It also coincides with a former resistance area around $6,800, which might hold as support moving forward.

RSI is pointing down but dipping into oversold territory to reflect exhaustion among sellers. Turning higher could bring buyers back in and lead to a continuation of the uptrend. Stochastic is already attempting to pull up from the oversold region to show that buyers might be ready to push bitcoin price back up to the swing high again.

BTCUSD Chart from TradingView

Market Factors

Bitcoin price has taken several hits these days, causing a retreat from the rallies in the previous weeks. However, many say that price is still safely within correction territory as FOMO traders may have also booked profits at higher levels and buyers are just waiting to jump in at cheaper prices.

Still, it would take another set of positive updates to revive optimism in the industry, possibly those pertaining to institutional interest or acquisitions in the space.

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