As we mentioned in a previous analysis Bitcoin has most probably ended its decline from its all time highs and made an important low around $30,000. Price has broken the short-term resistance trend line providing us with the first bullish (reversal) signal. Price is now making new short-term highs.
Red line - resistance (broken)
Red lines - Fibonacci extension targets
Blue lines - Fibonacci retracements
Bitcoin first target is at $41,780 but I believe most probably we will reach $45,000. Next target would be at $50,000 but it is too early to say if we can reach that target because many important resistance levels are between $45,000 and $50,000. Support is found at $36,500 and as long as price is above this level, I expect to reach $45,000 soon. For the medium-term trend it is important to see if price makes a lower high around $45,000-$50,000 and if it reverses from that area of resistance. This lower high could be a bearish signal for a coming second sell off wave for a push below $30,000. However it is still too early to tell. Now we focus on the short-term upside momentum and our first target of $45,000.
The material has been provided by InstaForex Company - www.instaforex.com