Bitcoin is trading around $60500 levels at the time of writing as bears prepare to drag lower toward $52000-500 mark. Also note that $52000 is the fibonacci 0.382 retracement of larger Wave (5) between $28600 and $67000 levels respectively.
Bitcoin’s larger degree wave structure is indicating a potential five wave rally complete between $4000 and $67000 respectively. The counts are marked as Waves (1) through (5) on the daily chart here. If the above is correct, a similar degree corrective wave should be underway soon.
Alternatively, Wave (5) is still unfolding and Wave 1 of (5) has terminated around $67000 levels. Either way, a corrective decline should be underway with potential drop to $43000 mark. Also note that $43000 is fibonacci 0.618 retracement of the rally between $28600 and $67000.
Furthermore, the trend line support from sub $4000 level is also passing through $43000-44000 mark. Probability remains high for a bullish turn if prices reach there, and resume its up-trend. Only a break below trend line support and subsequently $28600 will change the trend.
Traders might be preparing to initiate fresh short positions now ($60000-61000), with risk above $67000 and potential target toward $52000 and $43000 levels respectively.
The Profinacademy.com Team
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