The cryptocurrency continues testing the support level at the 61.8% Fibonacci retracement and is unable to maintain previous gains. In the past few sessions, the support has proven to be strong as the pair has not traded below it since early December.
The Bollinger bands are narrower than we are used to, and the pair trades closer to the lower band, suggesting that the price is relatively low. Based on the technical analysis we believe that this support level will hold the drop and allow Bitcoin to recover some ground in the next few sessions.
The relative strength index is at 40% which will allow the pair to start a recovery soon if the support level is strong enough, if the pair continues falling, we would want to wait until the RSI hits an oversold status to place a long trade.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
