On the 21st of October, Bitcoin reached an all-time high, making it just above $6200. But it didn’t stay long there and almost immediately started to move lower, currently trading at $5640.
Technically, Bitcoin rejected two 727.2% Fibbonatti levels, applied to different corrective waves. What is surprising is that it was a very clear rejection of $6160-6170 and daily close below that price.
According to historical data, past two corrective waves, were down to 50% and 61.8% retracement levels. If this time history will repeat itself and this patter will continue, this time a corrective wave down should test 76.4% retracement level, which is $3800.
Therefore, unless BTC/USD manages to break above $6200, the very likely scenario is a 40% drop in value in the coming months.