The 200-day moving average is the ideal pullback target for Bitcoin, according to Tony Sycamore, Director of Australia-based TECHFX TRADERS.
Sycamore says the high on 1 June (at 10,429) may have marked the completion of a 5-wave advance and that Bitcoin is now in the midst of a countertrend correction towards the 200-day moving average at 8,300 (Chart 1). Should Bitcoin reach this level, Sycamore says he would look closely at whether it was a buying opportunity.
Sycamore stresses, however, that only a close above 10,500 and then 11,000 would suggest the correction is complete and that the uptrend has resumed. As such, his current stance is neutral, turning bullish on a close above the 10,500/11,000 area with a target of 14,000 (Chart 2).