Bitcoin could bounce back towards $49,000

Bitcoin is trading around $45,000 price level near its weekly lows. Price reversed from $53,000 and came all the way down towards the 38% Fibonacci retracement of the entire rise from $29,000. Price so far respects the first Fibonacci support at the 38% level. As long as this is the case, we could see a strong bounce back towards $49,000-$50,000 next week.

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Green lines - Fibonacci retracements

Blue rectangle - support

Green rectangle - bounce target

Bitcoin is trading above the 38% Fibonacci retracement support. As long as price stays above it, I believe there are increased chances of seeing a bounce towards $49,000 at least. The formation of a lower high is more probable right now than the resumption of the downtrend. I believe we are going to see lower levels in Bitcoin. Confirmation for this scenario will come with the break of the 38% Fibonacci retracement level. Next downside target is at $41,000.

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

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