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Bitcoin Price Key Highlights
- Bitcoin price has established another set of record highs but has since pulled back from the rally.
- Price is currently testing an area of interest around the former resistance at $8000.
- This lines up with a Fibonacci retracement level and using the extension tool on this correction shows the next upside targets.
Bitcoin price is pulling back after setting new all-time highs, offering bulls a chance to join in the rally.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. This means that the rally is more likely to continue than to reverse. The short-term moving average is also close to the area of interest and might act as another layer of defense even if the ascending trend line breaks.
If support holds, bitcoin price could head up to the 38.2% extension at $8200 next then to the 50% extension at $8300. The 61.8% extension is located at $8355 then the 76.4% extension is at $8437.82. The full extension is at $8571.16.
Stochastic is still pointing down, though, so there may be some selling pressure left in play. Similarly, RSI is heading south so bitcoin price could follow suit.
Market Factors
The dollar has regained some ground to its peers as US bond yields ticked higher on hawkish expectations for the FOMC minutes. Although a December hike is priced in, traders are waiting to find out how tightening odds are looking for next year.
Investors might also be booking profits early ahead of the Thanksgiving holidays in the US, which might lead to gaps when markets reopen the following week.
Still, many expect the cryptocurrency to bounce as CME moves to launch bitcoin futures before the end of the year. Any roadblocks to this, however, could force the cryptocurrency to stage a deeper pullback across the board. The group clarified that they haven’t set a date yet since it is still pending regulatory approval.
