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Saturday, October 16, 2021

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Bitcoin The rejection at $ 50,000 anticipates the exhaustion of the bulls

Bitcoin’s powerful bounce since prices bottomed in July hit 70 percent, a rally that left bullish investors on the brink of exhaustion. The coin recovered $ 50,000 but barely held out above this psychological barrier.

The flow of news reaching the market invited optimism. For example, Citi will offer its clients to trade bitcoin futures, while the United States opened the door to exchange-traded funds (ETFs) with the digital currency.

However, it did not take long for the profit-taking to appear as soon as bitcoin moved above $ 50,000, suggesting that “could have a corrective movement ”, aim Craig erlam, an Oanda analyst.

This Thursday, bitcoin fell more than 4 percent at the open and lost its April lows, trading below $ 46,600, another technical signal that does not invite optimism.

Resistance for bitcoin above $ 50,000

The failure of the $ 50,000 attack spurred bear investors. A little higher, around $ 51,000, there is resistance formed by the 61.8% Fibonacci retracement from April highs to June lows.

This level of congestion “It may be contributing to the collection of profits that it seems we are seeing”sums up Erlam.

The downward pressure on bitcoin in the final stretch of the week is intense. Bloomberg analysts studied technical indicators Demark, specific the TD Combo and the TD Sequential, who follow the trend and try to anticipate its exhaustion.

The conclusion of these experts is that both indicators are beginning to detect at least a pause in the rebound of bitcoin, and possibly a more significant correction. They suggest that the bullish rally is winding down.

A healthy correction for bitcoin?

Now, the next big benchmark bitcoin is heading for is around $ 45,900. The average of 200 sessions currently passes through here, which has been acting as a dynamic support for the price.

In Erlam’s judgment, what has been seen in the bitcoin market “is not extraordinary.” Strong swings and volatility are part of its DNA. What remains to be determined is whether the serious alarm signals have sounded.

For the Oanda expert, “the long term is still bullish, but perhaps a correction would be healthy. “

If the falls go to more, prices could head towards $ 42,400, where there is support made up of the 38.2 percent Fibonacci retracement.

Evening star pattern in formation

Candlestick analysts also identified the possible formation of an evening star pattern on the daily bitcoin chart, which has strong bearish implications.

This formation occurs when three candles are strung in a row. The first bullish, the second a small body and the third a large bearish candle that could be the one that confirms the change in trend.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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