What To Expect From Bitcoin

After an incredible uptrend, Bitcoin reached an all-time high hitting $20,000. This was an extremely strong psychological resistance level where buyers started to fix profit. It has resulted in a massive correction where Bitcoin declined down to $9,000, losingĀ 55%.

It seems that bitcoin found the support near $10,825 which has been rejected for the second time. This level also corresponds to 50% Fibonacci retracement level, and although price spiked lower, the daily close price remained above that level.

In order for Bitcoin to go lower, a daily close must be below $9k, it this case price could drop as low as $4k, where 88.6% Fibs. But it seems quite unlikely considering the demand and the number of investors getting involved in the cryptocurrency trading all over the world.

As the support is holding, Bitcoin could take a break and consolidate for some time, while range trading between $14k resistance and $9k support. If it manages to break above the $14k resistance, price could once again go up to $20k to form a double top and perhaps continue a long term uptrend and establishing new all-time highs.

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