Today Bitcoin has once again reached an all-time high, hitting $8730! Indeed an excellent performance by Bitcoin! However, what goes up must come down and this rule applies to any market, which does moves in waves.
From what it looks like Bitcoin has finished or is about to finish its’ wave up and should be ready to correct down. BTC/USD has rejected two Fibonacci retracement levels.
First Fibs, applied to the corrective wave after the downtrend channel breakout, shows that 1127.2% level has been rejected. While the second Fibs, applied to the 08/11 high and 12/11 low shows that 127.2% Fibonacci has been rejected today. Both of these levels correspond with today’s’ high at $8730 and do act as a very strong resistance for Bitcoin.
Nevertheless, daily spikes above are possible but correction down should be expected. As a confirmation of the downward movement, the support at $7950 must be broken. If that happens, Bitcoin is likely to correct either to 38.2% or 61.8% Fibonacci retracement levels that do correspond with the Gann Fan trendlines.
To summarise, Bitcoin has rejected strong resistance where correction down becomes more likely. Break below $7950 should confirm the correction. Downside targets are $6300 and $5100 areas.