Bitcoin appears to have completed a short-term pullback on its uptrend and could be setting its sights higher again.

Or is a deeper correction still due?

After hitting fresh record highs around the $112K level last week, bitcoin staged a quick pullback to the former resistance zone around $107K that coincided with a longer-term rising trend line.

Can this support keep holding and send BTC/USD to new all-time highs again?

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

The “Sell America” sentiment stemming from Moody’s credit rating downgrade and a potentially swelling U.S. government deficit from Trump’s tax bill approval combined forces to weigh on the U.S. dollar last week and led traders to non-traditional safe-havens like bitcoin a.k.a. “digital gold.”

Markets don’t seem to be showing much lover for USD again so far this week, allowing bitcoin to bounce off the area of interest around the pivot point level ($107,751) early on.

The 100 SMA is steadily above the 200 SMA on this time frame, suggesting that bullish pressure could stay on and possibly lift bitcoin up to the latest highs just below R1 ($113,337) or higher.

Just keep an eye out for another potential dip back to the support region or the 61.8% Fib at $105,721 that could attract more buyers at bargain levels. Still, look out for long red candlesticks closing below S1 ($103,463) that could suggest a possible trend reversal.

Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!

Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.