Chart Art: Potential Correction Levels for Bitcoin (BTC/USD)

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Is bitcoin gearing up for another pullback?

BTC/USD recently busted through its falling trend line but seems to be stalling around $31,500.

If that’s the case, better keep your eyes on these potential support zones at the Fib retracement levels.

Bitcoin (BTC/USD) 4-hour Chart

Bitcoin (BTC/USD) 4-hour Chart by TV

Breaking below its short-term consolidation pattern could clear the way for a test of the 38.2% Fib near the $29,000 handle.

An even larger pullback could reach the 50% level that lines up with the 200 SMA dynamic support or the 61.8% Fib that’s closer to the former trend line resistance.

Technical indicators are hinting that the reversal is likely to gain traction. After all, the 100 SMA is above the 200 SMA to reflect bullish vibes and is increasing its lead to indicate strengthening upside momentum.

Stochastic is still pointing down but is closing in on the oversold region to signal exhaustion among sellers soon. Once the oscillator turns higher, bitcoin bulls might decide to charge again and take BTC/USD back up to the swing high and beyond.

Crypto players are likely holding out for the U.S. NFP report, as this might have a strong impact on overall market sentiment.

Leading indicators seem to be pointing to another positive surprise, which could then give the Fed leeway to keep tightening monetary policy. In turn, this could translate to major gains for the U.S. dollar on risk-off flows and the prospect of higher interest rates.

Do you think this might be enough to take BTC/USD down to its correction levels?

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.

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About the Author: Webbey Team

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