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Key Points of the Bitcoin Price
- The price of bitcoin is in the middle of a larger correction of the previously highlighted area of interest.
- If support holds, the bitcoin could recover Fibonacci extension levels marked over 4 hours
- The technical indicators seem to suggest that there is still a chance for the bulls to load at these levels.
The bitcoin price is making a deeper correction from the previous rally and the technical indicators suggest that the climb could resume. [19659006] Technical Indicator Signals
The 100 SMA is safe above the 200 long-term SMA to confirm that the path of least resistance is on the upside. This basically means that the uptrend is more likely to resume rather than reverse. However, the price of bitcoin is lower than the dynamic inflection point of 200 SMA to signal a weaker bullish pressure.
The price is still in the area of interest or previous resistance around $ 6,800 to $ 7,000, which could hold back as support from here. You can also draw a rising trend line to link the lows from the third week of July.
The RSI is already veering higher after indicating oversold conditions and showing some upside divergence. This means that buyers are ready to go back and push the bitcoin price back. The 38.2% extension approaches the 100 SMA dynamic inflection point at $ 7.826, so the 61.8% extension aligns with the high swing close to $ 8,500.
Greater upside momentum could bring the price of bitcoin up to 78.6% to $ 8.827 or the full extension to $ 9.357. The Stochastic is also starting to leave the oversold region, also indicating a recovery in the pressure of purchase.
BTCUSD chart from TradingView
Bitcoin's price has suffered some hits after Starbucks made it clear that it does not accept bitcoin payments in stores, even after collaborating with ICE for a digital platform called Bakkt. Traders could continue to resist for the next set of major updates to determine if a rebound or break at these levels is needed.
