Bitcoin Potential Correction Down

Bitcoin has been rising since 24th of June, and went from $5780 up to the recent high at $8490 area, gaining 48% against the USD. Currently price has corrected down and found the support at the 50% Fibonacci retracement level and rejected the uptrend trendline at the same time.

Overall, the trend remains bullish and at this point, while the Fibonacci support holds, the uptrend continuation is likely to take place. However, if the trendline is broken, BTC/USD might correct down further, towards one of the next minor Fibonacci support levels.

Break below the trendline could also mean the consolidation between the $7350 and $7850 levels. If BTC will break below the $7350, more downside correction should be expected, and Bitcoin could reach the $7k psychological support, that is 61.8% Fibonacci retracement.

Finally, if the support at $7k is broken, next support is seen at $6650, which is 76.4% Fibs. And only break and close below the $6650 could be the confirmation of the downtrend continuation.

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