The cryptocurrency managed to break the Fibonacci retracement at 61.8% and 50% and now trades at the 45,252 levels. The 50 retracement is crucial as it often signifies a trend reversal; however, we do not see solid evidence supporting this case, which is why we believe this is just a temporary pullback.
The Bollinger bands are opening, which will likely bring higher volatility to the pair in the short term; the price trades closer to the lower band, suggesting that it is relatively low, which could incentivize investors to continue buying the asset.
The relative strength index is at 45%, which will allow Bitcoin to continue moving up in the short term; as it has been recovering from almost entering an overbought status, we believe this price correction will adjust and allow the crypto to continue its uptrend.
Our moving averages are getting closer to a crossing, which in addition to the price breaking the 50% retracement, will give us a reason to believe that the reversal is actually possible. Still, until then, we will treat this as a simple pullback.
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