Next target for Bitcoin above $4000

Bitcoin is bouncing off a short-term area of interest visible on the one hour time frame. This could help it move towards testing the next targets marked by the Fibonacci extension tool.

Price is getting close to the 38.2% level at the $4,000 major mark, which could eventually work as a take-profit point again. The 50% level lines up with the area around $4,040 that might get cautious buyers to gain profits. Stronger bullish momentum could take price up to the 61.8% Fib at $4,062.80 or the 78.6% level at $4,100. The full extension is at $4,168.70.

The 100 SMA is above the longer-term 200 SMA for now to show that the way of least resistance is to the upside. However, the gap between the indicators has narrowed enough to signal weaker bullish momentum and a potential bearish crossover. In this case, price might again go below the area of interest and go back to the lows at $3,770.

RSI appears to go south even without hitting the overbought zone, indicating that sellers are eager to return. Stochastic is also heading lower to indicate that bears could take bitcoin further south, since the oscillator has plenty of space before reaching oversold levels.

Traders appear to be waiting for more catalysts to confirm the bull run isn’t over, as price would likely to clear several barriers before drawing more buying interest. For now, the focus seems to be on the drop in volumes that is weighing on volatility.

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