Following the peak of the Covid pandemic in March 2020 when price declined by 48%,
price turned around and gradually moved back to the upside, eventually breaching
the all-time high 11 months later.
In May 2021, price created a new all-time high at $3,017 before heading back down
towards the weekly 50 simple moving average.
The 50 simple moving average was an important catalyst in the growth of price and
appeared as though is was going to hold as support again in August 2021.
Price breached this indicator and has since moved further down to the next obvious
level of support: the psychological $2,000 round number.
If this support zone holds strong, we should soon see a bounce back to the upside
and a bull trend resumption.
The bigger picture shows us that price is in a long-term period of consolidation,
which began in February 2020. The all-time high in May 2021 was just a fake breakout.
For now, this commodity will likely prove challenging to invest in, so the safest option
is to wait for a break and close above the all-time high at $3,017 before considering
any long opportunities.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
price turned around and gradually moved back to the upside, eventually breaching
the all-time high 11 months later.
In May 2021, price created a new all-time high at $3,017 before heading back down
towards the weekly 50 simple moving average.
The 50 simple moving average was an important catalyst in the growth of price and
appeared as though is was going to hold as support again in August 2021.
Price breached this indicator and has since moved further down to the next obvious
level of support: the psychological $2,000 round number.
If this support zone holds strong, we should soon see a bounce back to the upside
and a bull trend resumption.
The bigger picture shows us that price is in a long-term period of consolidation,
which began in February 2020. The all-time high in May 2021 was just a fake breakout.
For now, this commodity will likely prove challenging to invest in, so the safest option
is to wait for a break and close above the all-time high at $3,017 before considering
any long opportunities.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
