Bitcoin (BTC) – Bulls maybe taking a breather

Bitcoin (BTC) – Bulls maybe taking a breather

Bitcoin (BTC) showed some signs of fatigue in Wednesday’s session after its explosive bullish run hit a wall near the 200-day simple moving average at 48,300.

But the medium-term picture is still looking bright, as suggested by the current positive crossover of the 20- and 50-day simple moving averages. A decisive close above the 200-day simple moving average at 48,300, will most likely produce another bullish extension towards the 51,000 – 52,100 belt, shaped by the December 27^th high and the 50% Fibonacci retracement level of the previous months’ downfall. Beyond that, traders will initially target the 61.8% Fibonacci retracement level at 55,250.

Nevertheless, some profit-taking would be normal following such an impressive rally, with the IMI and stochastic endorsing the potential for a minor correction or some consolidation, as the indicators look set to shift south within the overbought area.

In such a scenario, if the crypto leader drops underneath the 45,900 tough obstacle, it may attempt to find its feet somewhere around the March 9^th inside swing high at 42,600 and the adjacent 20-day simple moving average. Not far below, the 40-day simple moving average may act as another upside defense at 41,400. Further lower, eyes will turn towards the 37,000 region.

In a nutshell, Bitcoin is in bullish mode, aiming to stretch toward 51,000, but some caution is required as buying pressures look somewhat fragile at the moment.