Bitcoin Price Risks Pullback Before Testing $8K Again

Bitcoin could be in for a minor price pullback, having clocked a 39-day high above $7,500 earlier today, technical charts indicate.

Further, the price rally has pushed the week-on-week gains higher to 15 percent.

On Tuesday, BTC crossed the inverse head-and-shoulders neckline resistance of $6,838 with strength, confirming a short-term bearish-to-bullish trend change.

The move may not happen in the next 24 hours as the retreat from $7,562 to $7,370 indicates the bulls are keen on booking profits, having pushed BTC higher by more than 1,300 dollars in the last 72 hours.

The above chart shows BTC has pulled back from near 100-day moving average hurdle of $7,613, still, the bias remains bullish as the cryptocurrency has found acceptance above the 50-day MA. Further, the short-term moving averages are rising in favor of the bulls and the 5-day MA has cut the 50-day MA from below, confirming a bullish crossover.

Thus, BTC is more likely to extend the rally to $7,900-$8,000 in the short-run and confirm a successful reentry in the pennant pattern.

The RSI is beginning to roll over from the overbought territory and the price pullback will likely gather pace if RSI drops below support at 58.00.

We are unable to rule out a drop in BTC prices to $7,000.

View BTC price is seen rallying to $8,000 in the short-run, albeit after a healthy pullback to $7,000.

The technical correction will likely help BTC chart a more sustainable rally to $8,000.