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
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