Source: Forex Analysis
Bitcoin has increased significantly in the latest days and it seems ready to jump much higher after the failure to stabilize below the 23.6% retracement level. Yesterday’s impressive rally has signalled that the bulls are very strong in the short term, but BTC price has reached a very important upside obstacle, the 50% Fibonacci line.
You can see on the daily chart that BTCUSD has escaped from the descending orange pitchfork, a retest and a rejection from the upper median line (uml) could send the rate much above the 50% Fibonacci line and above the 38.2% retracement level.
On the second chart, I’ve drawn an ascending pitchfork (dark blue) to catch the current upside movement. BTCUSD rallied after the bullish engulfing and now is trading right above the sliding line (SL). If the price stays above the SL, the outlook remains bullish and it could resume the upside movement, we have a potential target at the median line (ML) of the minor ascending pitchfork, above $10,000 psychological level.
A rejection from the 50% Fibonacci line (ascending dotted line) and a drop below the SL will signal that BTCUSD will come back towards the upper median line (uml) and maybe it will reach the LML as well. The critical support level remains at the 7711 level, a drop below this level will open the door for more drops.
The material has been provided by InstaForex Company – www.instaforex.com