As I predicted a few days ago, BTC dropped to $5,500 and fired off the strong support line, just to reach $6,350. After another quick drop from $6,350, Bitcoin has formed a double bottom and bounced off the support at $5,500 again. So what is going to happen next? Where is Bitcoin heading?
Right now BTC price is touching the previous trendline which now acts as resistance. If it break above it, chances are that Bitcoin will continue its upward movement. First to $6,800 where it will face another resistance level. After that it could go up to $6,950 where we have the major resistance level.
Now take a look on the Fibonnaci retracement levels. As you can see, 61% Fibo retracement is right on the resistance level we just mentioned. So we have an important retracement level in the same spot where the major resistance level lies. All that means Bitcoin is going to face strong sellers pressure when/if it reach close to $6,950. Round numbers are also an important factor in trading, so let’s say we can expect Bitcoin to spike up to $7,000.
What is going to happen after that? It’s very hard to say. There is a possibility that a lot of people who bought above $7,000 when BTC reached it previous all times high will sell it, so the price will drop again. How far? Maybe Bitcoin could fall as far as $4,800-$5,100 zone where we have the major support zone. That would be a perfect place to buy and to hold until BTC reach $7,000+ again.
So, what do you think?