Bitcoin Prepares to Test $8K After Bull Breather

Bitcoin's refresher pause has likely set the tone for the next leg higher in prices.

The leading cryptocurrency has spent a better part of the last 15 hours trading the $7,240-$7,440 trading range, having clocked a 40-day high of $7,588 at 18:00 UTC yesterday.

The price pullback and the subsequent consolidation, when viewed against the backdrop of the high volume inverse head-and-shoulders breakout, indicates that BTC has likely gathered steam for a more sustainable rally towards $8,000.

The short-term moving averages are trending north, indicating a bullish setup.

Clearly, bitcoin remains on the hunt for $8,000 and the short duration chart indicates the move could happen in the next 48 hours.

The Bollinger Bands narrowed at 00:00 UTC yesterday, meaning the volatility has remained low for more than 24 hours.

As a result, we could in for a big move in either direction as an extended period of low volatility is often followed by a period of high volatility.

The major moving averages have caught up with rising prices, which indicates BTC markets are no longer overstretched.

View Bitcoin's price pullback has likely recharged the engines for a rally to $8,000 and the psychological resistance could be put to test in the next 48 hours.

The short-term outlook remains bullish as long as BTC is trading above the inverse head-and-shoulders neckline of $6,838.