Bitcoin – Patience to pay off?

Or pullback a cause for concern?

Should we be concerned that the bitcoin has stalled just as it appeared poised to take off?

Bitcoin has pulled back in recent days, with the price falling from around $41,000 to roughly $37,500. The move came just as many were speculating that cryptos are back after their late spring /early summer slump. Should the short-lived rally be a source of concern or encouragement?

While arguably surprising, it strikes me as being far from concerning. The pullback hasn’t gathered much momentum and key levels remain below, levels that would recognise the moves as corrective rather than anything more significant.

The 50/61.8 fib zone strikes me as being a very important area that, should price get that far, could see significant support.

And we may not even get that far, with the crypto already seeing some interest around the upper end of the moving average bands.

With that in mind, bitcoin looks in a good position and only a move below those key fib levels would suggest otherwise.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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