Markets have been on the back foot over the course of this week thus far, with that risk-off sentiment bringing strength for the US dollar. Unfortunately for Bitcoin bulls, a strong dollar and rising US yields has dampened sentiment for the cryptocurrency. However, we are looking at a clearly defined trend that remains in place despite recent losses. With price falling back into the 50% Fibonacci retracement level, we can see that both prior occasions saw an upturn from a similar mid-sized pullback. A rebound from this level would also bring a third touch to a trendline that has been building over the course of the year. With that in mind, watch out for a potential bullish reversal, with a break below this confluence of support signalling the potential for a deeper pullback for this crypto posterchild.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.