Bitcoin stabilizes decline around $46,000.

After reaching new short-term highs close to $53,000, Bitcoin reversed as expected and reached close to $42,000. Price has touched the 38% Fibonacci retracement support. Price has bounced towards $46,000 but I believe it is more probable to see another move lower below $43,000 than a new higher high above $53,000.

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Red line - expected path

Green lines- Fibonacci retracements

Bitcoin has most probably completed the entire upward move from $29,000. This is the time to at least make a corrective pull back. The corrective pull back has started and the first leg down is most probably complete. I expect a shallow bounce and then another move lower towards the 50%-61.8% retracement area. Price remains vulnerable to more downside and I expect to see this move lower unfold until the end of next week. Then we will know more about the medium-term trend potential of Bitcoin.





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Alexandros Yfantis
Analytical expert of InstaForex
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