Bitcoin – Larger correction on the cards?

Bitcoin correction short-lived but momentum already waning

Bitcoin is having another run at $47,000 at the end of the week.

The pullback was quite shallow and short-lived in the end although it could still face resistance at the previous peak, where we’re already seeing momentum slip a little.

A failure to break $47,000 wouldn’t be any concern at this stage and could just be indicative of the correction having not run its course. The rally is looking perfectly healthy regardless of whether we see a breakout or a pullback.

Even a move below yesterday’s lows could just signal a bigger correction back to the $41,000 region, based on the size of the double top that would have formed, which would see it run into prior resistance and the 61.8 fib of the August lows to highs.

A move above $47,000 and resistance remains the same – $50,000-51,000 – in line with prior support and resistance, and the 61.8 fib – April highs to June lows.

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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