Bitcoin recently surged past the top of its symmetrical triangle on the 4-hour time frame to signal that bullish pressure has won over. However, this move was quickly faded, likely on profit-taking.
Price is still above the triangle top, though, so bulls still have some control. If the drop was merely a pullback, more buyers could join in at current levels or on a retest of the broken triangle resistance around $6,500. Holding as support could push Bitcoin to the Fibonacci extension levels as the next upside targets.
The 61.8% level might be the first take-profit point as it lines up with the swing high just below $7,800. Stronger bullish pressure could take it up to the 78.6% extension around the $8,000 major psychological mark and area of interest. The full extension is around the $8,300 mark.
The moving averages are barely offering any directional clues at the moment as the indicators are still oscillating to reflect range-bound action. The 100 SMA might retain its lead over the 200 SMA, though, and these moving averages could keep holding as dynamic support zones.
Stochastic is heading south so Bitcoin might follow suit for a deeper correction before the oscillator hits oversold levels and turns back up. RSI is just making its way down from the oversold region to suggest that sellers could stay in the game for much longer, possibly even taking Bitcoin back inside or below the triangle. In this case, price could attempt to break support at $6,200 and trigger a longer-term drop.
The sharp Bitcoin rally is being pinned on the selloff in Tether, which spurred some panic among investors who rushed to liquidate their holdings and move them to the inversely correlated Bitcoin instead. Apart from that, news that Fidelity will launch its institutional platform for Bitcoin and Ethereum might also be enough to sustain the climb.
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