On the 8th of November, Bitcoin has reached an all-time high against USD, testing $7900 price tag. Immediately after a strong corrective wave followed, where BTC/USD moved down to $5400, losing over 30% in just 3 days.
The Bitcoin correction has stopped at 50% Fibonacci retracement level, 2/1 Gann Fan trendline as well as 200 Moving Average. All of them were rejected, suggesting that the strong support is being tested that might result in a continuation of an uptrend if not broken.
However, looking at the statistics of the prior corrective waves, both of them were approximately 40%. Could this mean that history will repeat itself and BTC will move lower towards 61.8% Fibonacci at $4900 to make it a 40% correction? While the $5500 support is holding this scenario remains unlikely and BTC could continue rising or enter a consolidation phase. In any case, while there is uncertainty about the short-term direction, the long-term trend remains very bullish.
The Bitcoin correction has stopped at 50% Fibonacci retracement level, 2/1 Gann Fan trendline as well as 200 Moving Average. All of them were rejected, suggesting that the strong support is being tested that might result in a continuation of an uptrend if not broken.
However, looking at the statistics of the prior corrective waves, both of them were approximately 40%. Could this mean that history will repeat itself and BTC will move lower towards 61.8% Fibonacci at $4900 to make it a 40% correction? While the $5500 support is holding this scenario remains unlikely and BTC could continue rising or enter a consolidation phase. In any case, while there is uncertainty about the short-term direction, the long-term trend remains very bullish.
Trade closed: target reached