Bitcoin Price Analysis: Fibonacci analysis of BTC/USD
- Bitcoin trades nearly 15% higher as crypto sentiment turns positive on Thursday.
- There is a Fib confluence area close to the 8K level where the bulls could find trouble.
BTC/USD daily chart
Bitcoin has bounced today after the heavy price drop over the last few weeks. Just one month ago the price of Bitcoin rose to above 10K and now BTC/USD trades at 6,172.00 on Thursday afternoon. Despite this, the bulls have come to join the party once again and the halving event next month is projected to push up the price once again.
Looking at the chart below you can see that the BTC/USD has been respecting the Fibonacci tools perfectly. This recent price drop fell exactly to the red 161.% extension to the point. Now there has been a retracement on the upside the 61.8% retracement and extension match up perfectly very close to the psychological 8K level.
Prior to this move the major move lower followed the Elliott Wave principle very nicely and this makes me believe that Bitcoin follows the Fibonacci rules so keep an eye on the key Fib levels.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
