Bitcoin retests Fibonacci support.

Bitcoin made another pull back towards $37,350 at the 38% Fibonacci retracement. Price made a double bottom as support was respected. Bulls continue to control short-term trend as price recaptures $40,000 price level with potential to see a break out.

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Red lines - resistance trend lines

Blue lines -Fibonacci retracements

Bitcoin re-tested the 38% Fibonacci retracement for the second time. This bounce off the 38% level confirms the importance of the support level. Breaking below this level will open the way for a deeper decline towards $34,000. However the double bottom at $37,300-$37,400 is an important sign of strength and if price breaks above the $42,000, we could see a bigger rise towards $50,000. As long as price is above $37,000 we are short-term bullish. Breaking above $42,000 will provide a bullish signal.

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

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