Bitcoin bedazzles Part III

hile this is a relatively modest decline in the world of digital assets, the lack of any meaningful headline to explain the decline has left some wondering what comes next for Bitcoin.

Since trading to a low of $28,600 midway through this year, Bitcoin has rallied ~130% to a new all-time high above $67,000, including a 50% rally in October alone.

Bitcoins rally in October in tandem with an impressive rally in U.S. equities, providing yet another reminder that Bitcoin is in part a risk asset and a high beta play on stocks.

Notably, U.S stocks appear a little tired, and a modest correction before the uptrend resumes would not surprise, reducing short-term support for Bitcoin.

High inflation readings coming in part from surging oil energy prices have been reported in several countries this month. Bitcoin has traded like a digital inflation hedge as gold has done in the past.

Notably, oil prices have fallen 5% this week, potentially helping ease inflation expectations and reducing short-term support for Bitcoin.

Considering the two factors mentioned above and adding into the mix leveraged selling on the break of support at $60,000, the current pullback in Bitcoin appears logical.

Technically, the current pullback in Bitcoin is viewed as the correction alluded to in this article on Bitcoin here

“While we remain medium-term bullish Bitcoin, we are now neutral in the short term and looking to re-enter longs, ideally on a corrective pullback.”

The target for the correction is a band of support between $55,000/$53,000, which encapsulates wave equality, the target for the head and shoulders topping pattern, and the early September El Salvador high at $53,000.

Pending signs of basing in this region look to re-open longs in anticipation of a rally towards $75,000 into year-end.

Source Tradingview. The figures stated areas of October 28th, 2021. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

Open a Forex.com account, or log in if you’re already a customer.
Search for the pair you want to trade in our award-winning platform.
Choose your position and size, and your stop and limit levels.
Place the trade.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

FOREX.com is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment and CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.forex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.forex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 42.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

Delayed London Stock Exchange (LSE) Data

The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.