The cryptocurrency started an uptrend on July 21st and had a ten-day winning streak; the price made a correction, found support, and started climbing again. Right now, the price is very close to the 50% Fibonacci retracement.
A breakout of the resistance level at $46,752 will signify a trend reversal for the asset, but this is unlikely to happen in the following hours as the relative strength index is currently overbought at 71%. It is possible to see a pullback in the next sessions, perhaps to the $42,460 levels; this will allow the pair to gather strength, continue the uptrend and potentially complete the resistance breakout.
The Bollinger bands are wide and pointing upwards, which is a good indication of high volatility and an uptrend, respectively. However, the price is trading close to the upper band, suggesting the price is relatively high, supporting other technical indicators.
Our parabolic SAR indicator suggests that the price will continue to climb; however other indicators tell us that a pullback is more likely to happen in the short term.
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.