Bitcoin expected to continue its bounce towards $57,000.

After an important decline from $64,728 to $47,090 Bitcoin is now bouncing back above $50,000. There are increased chances that this upward move is just a counter trend bounce because the correction phase has started for Bitcoin and we should expect more downside over the coming weeks. However in the short-term we expect Bitcoin to reach $57,000 again.

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Blue lines -Fibonacci retracements

Red rectangle - bounce target

Bitcoin has most probable made a short-term low at $47,090 area earlier today. Price is reversing strongly to the upside and is approaching the 38% Fibonacci retracement resistance. I expect price to bounce all the way to the 61.8% Fibonacci level and maybe higher over the coming days. If bulls manage to hold above $50,000-$47,000 then we could see more upside to new all time highs. However my most probable scenario is for Bitcoin to make a lower high around $57,000 and reverse to the downside to break below $47,000 and move even lower towards $40,000-$30,000.

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

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