Bitcoin is heading into a short term correction

BYBIT:BTCUSD   Bitcoin / U.S. Dollar
After closer examination, it seems reasonable to assume that the Bitcoin price will go through a short-term correction before a retest of the previous all-time high can take place. At least if past patterns will repeat.

Upward sideways movements, where a clear bearish divergence is forming on the MACD and RSI indicators on the 4-hour chart, are typical for Bitcoin . Currently, we have such a move in place and accordingly, it resembles the pattern that the above chart illustrates.

So, today we could see another attempt to establish above $58,000 after a smaller countermovement, which should happen now. In this attempt, a kind of double top (3 + 4) would be formed according to the pattern and would result in a larger correction (8-12%).

Of course, it should be taken to heart that the movements shown are similar, but never the same. Nevertheless, this comparison makes it clear that a correction is to be expected here soon. I would estimate that this will begin sometime between tonight and tomorrow.

Using Fibonacci levels, we can identify some possible price targets for this correction:

(1) 0.618-Fibonacci level: $54,200 (~6.8%)
(2) 0.500-Fibonacci level: $51,500 (~11.7%)
(3) 0.382-Fibonacci level: $48,650 (~16.6%)

In this context, price target (2) would fit best into the previous scheme in terms of magnitude. However, price target (1) would be preferred from the price structure, since previous corrections led the price back to the beginning of the sideways movement.