Bitcoin breakout, first target $42,000.

Bitcoin has managed to break above the key resistance trend line and is now trading above $39,000. Price is now making higher highs and higher lows. Short-term trend is changing to bullish again and with the new break out, we are now expecting a move higher towards $42,000.

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Red lines - Fibonacci extensions

Black line -resistance

Bitcoin has managed to break above the resistance trend line that provided three price rejections so far. Bulls now need to keep price above the black trend line which is now support. Bitcoin is expected to move towards $42,000 and then pull back for a possible back test of the break out. Second target is at $47,000-$50,000. Support is key at recent low of $34,500 and bulls do not want to see price fall below this level.

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

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