The cryptocurrency has been on an uptrend since July 19th and has made significant progress in the last 25 sessions. The pair is very close to the resistance level at our 23.6% Fibonacci retracement; however, there is a chance of a pullback.
It would not surprise us if there is a retracement as the Relative strength index is currently at 69%, which is almost overbought; this could bring the price down a few points and allow the uptrend to continue after a small retracement.
The Bollinger bands are wide and moving up, strengthening the upward trend signal, but since the asset is trading above the upper band, some traders might believe that the price is relatively high, pushing them to close their long positions.
The short and long-term moving averages continue indicating that the general trend is upwards, the gap between the lines is growing, and it's a good indication for a mid-term uptrend as well.
The price left the Ichimoku cloud, which helped push the price up; although we do not believe that a pullback could bring the price back inside the cloud, there is always that possibility.
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.