- Bitcoin price is contemplating a pullback as the MRI flashes a sell signal.
- Ethereum price might also undergo a minor retracement to complete a massive bullish pattern.
- Ripple price also shows signs of a pullback as the MRI warns of an incoming sell-off.
Bitcoin price witnessed the second leg of its rally that originated on July 20 but failed to produce a convincing close above a crucial support level. Moreover, a technical indicator is flashing a sell signal, further supporting a downswing.
Therefore, investors can expect a minor pullback across the board.
Bitcoin price eyes a potential pullback
Bitcoin price climbed from $29,994 on July 20 to $46,700 as of August 10. This 59% ascent seems to be coming to an end as the Momentum Reversal Indicator (MRI) flashed a red ‘one’ sell signal on the 12-hour chart. This setup forecasts a one-to-four candlestick correction. Therefore, investors need to watch for a minor pullback to the immediate support level at $41,330 or $40,550.
While a retracement is likely, the recently flipped demand zone, extending from $43,150 to $45,321, could hinder the downside movement and produce a consolidation with that area.
Either way, BTC looks bullish and might continue to rally after a brief setback.
In the case of an ascent, the resistance levels at $49,024 and $50,958 will likely be the bulls’ targets.
BTC/USDT 12-hour chart
Regardless of the bullish outlook, a potential spike in selling pressure that pushes BTC below $37,241 will negatively impact the upswing and invalidate the bullish thesis since it would produce a lower low.
