FxPro Analysts Explain The Reason For Correction Of Bitcoin
“Technical indicators have been in the extreme overbought territory for too long. The rally started to “choke up” on the way to $20K. This is a very serious psychological and technical level of resistance for the market, and there was no doubt that this obstacle would test investors’ optimism,” the broker said in a statement.
At the time of writing, Bitcoin is down 11% and is selling for $16,800. Technical indicators, including the Fear and Greed Index and the RSI, which were overbought for a long time, performed well, as they did in June 2019 when the correction began.
“The rally started in the area at $10K up to the ceiling at $19.5K. The rollback to $16K is within the scope of the Fibonacci correction, but a rapid decline below that level will wipe out all the upward movement of October-November,” the message says.
Note that you can get acquainted with all the pros and cons of the broker in the FxPro expert review on our portal.