On the 8th of November, Bitcoin has reached an all-time high, hitting $7900. After Bitcoin has formed a head and shoulders pattern and it looks like it will continue to go down.
The neckline of the Head And Shoulders has broken which is a confirmation of a trend reversal. It is possible that the neckline will be tested again and BTC/USD will return to $6900 area.
Although looking at the $6910, which is at 127.2% Fibonacci retracement level applied to the right shoulder, it was already rejected, thus it has already acted as a resistance. Nevertheless, the price could return there, but Bitcoin has already in a corrective phase that could send price back to $5600 area. $5600 is the 527.2% Fibonacci level that is corresponding with the 2/1 trendline of a Gann Fan indicator.
The overall long-term trend is upwards while the correction down is likely to continue at this stage. How far? It is yet to be seen.
The neckline of the Head And Shoulders has broken which is a confirmation of a trend reversal. It is possible that the neckline will be tested again and BTC/USD will return to $6900 area.
Although looking at the $6910, which is at 127.2% Fibonacci retracement level applied to the right shoulder, it was already rejected, thus it has already acted as a resistance. Nevertheless, the price could return there, but Bitcoin has already in a corrective phase that could send price back to $5600 area. $5600 is the 527.2% Fibonacci level that is corresponding with the 2/1 trendline of a Gann Fan indicator.
The overall long-term trend is upwards while the correction down is likely to continue at this stage. How far? It is yet to be seen.
Trade closed: target reached