Short-term technical analysis on Bitcoin

Bitcoin is retracing the entire upward move from $6,400 to $10,500. There are many chances that a medium-term higher low has been formed at $8,400 area. Price has stopped at the 50% Fibonacci retracement and is showing stabilization signs.

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Red lines - wedge pattern (broken)

BTCUSD has retraced so far 50% of the entire upward move. Price is showing reversal signs. A higher low and a move above $10,500 would be a very bullish sign for the longer-term trend in BTCUSD. However it is still too early for celebrations by the bulls. Another important Fibonacci retracement is the 61.8% level at $8,000 area. The corrective pull back might not be over and we might see another final move lower towards $8,000 before resuming the up trend. In conclusion, between $8,000-$8,400 BTCUSD has many chances of creating at least a medium-term bottom. From this area we expect price to retest 2020 highs.

The material has been provided by InstaForex Company - www.instaforex.com