Bitcoin (BTC) Bitcoin price maintained its bullish outlook as it continued to post higher highs. However, the leading cryptocurrency is likely to drop further to retest key support levels, while bulls can wait a bit before continuing the uptrend.
bitcoin price, creating an ascending parallel channel on the 12-hour chart, signaling a bullish outlook for BTC. Despite an indication of optimism, BTC could drop further to test critical support levels as the bulls continue to rest.
The first level of support for bitcoin price is located at the “100 twelve-hour Simple Moving Average (SMA)” at $42,221, followed by the “21 twelve-hour SMA” at $41,359.
Additional selling pressure could push bitcoin price towards the 38.2% Fibonacci retracement level from the $40,878 low, then towards the downtrend line of the technical pattern at $39,917, which coincides with the 50 twelve hourly SMA.
An increase in sell orders could lead the bears to drop to the 23.6% Fibonacci retracement level of $38,232 before labeling the support line by the Momentum Reversal Indicator (MRI) at $37,331.
However, an increase in bullish sentiment could result in buyers labeling the 50% retracement level at $43,016 and crossing the middle border of the dominant chart pattern.
The Arms Index (TRIN), which measures overall market sentiment, shows that there are still more buyers than sellers in the market.
BTC priceIt could be tested by the 61.8% Fibonacci retracement level at $45,154 before targeting the upper bound of the current chart pattern at $48,199, which coincides with the 78.6% Fibonacci retracement level.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.