Is Bitcoin preparing for another decline?
The BTC/USD pair recently broke out of the downtrend line but seems to be slowing down around $31,500.
If so, you’d better keep an eye on these potential support areas at Fibonacci retracement levels.
Bitcoin (BTC/USD) 4 hours Planned by TV
A break below the short-term consolidation pattern could pave the way for a test of 38.2% Fibonacci near $29,000.
A larger pullback could reach the 50% level which is aligned with the 200 SMA dynamic support or the 61.8% Fibonacci retracement level that is closer to the previous trendline resistance.
Technical indicators indicate that the reversal is likely to gain momentum. After all, the 100 SMA is above the 200 SMA to reflect a bullish reaction and is extending ahead to indicate a strong bullish momentum.
Stochastic is still pointing down but it is approaching the oversold area to indicate exhaustion among the sellers soon. Once the oscillator turns higher, the Bitcoin bulls may decide to charge up again and take BTC/USD back up to the swing high and beyond.
Crypto players are likely to wait for the US NFP report, as this could have a strong impact on the overall market sentiment.
The leading indicators seem to point to another positive surprise, which may give the Fed leeway to continue tightening monetary policy. In turn, this could translate into significant gains for the US dollar from risk-off inflows and the potential for higher interest rates.
Do you think this could be enough to bring BTC/USD down to correction levels?
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