Bitcoin (BTC) Price Analysis: Are Bulls Ready to Charge Again?

Bitcoin has pulled back on its climb over the past couple of days, but seems ready to resume the climb from here. Applying the Fibonacci extension tool shows the next potential upside targets.

The 38.2% extension lines up with the swing high around the $8,500 level but stronger bullish momentum could take bitcoin to the 50% extension at $8,629. From there, a continuation of the uptrend could lead to a test of the 61.8% extension at $8,912 or the 78.6% extension at $9,316. The full extension is located at $9,831.50.

The 100 SMA is still above the longer-term 200 SMA on this time frame, confirming that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.

However, the gap between the moving averages appears to be narrowing, indicating weakening bullish momentum. If this keeps up, bitcoin could be due for a larger pullback to the next area of interest closer to the 200 SMA dynamic inflection point.

This happens to line up with…