In our last analysis we noted that Bitcoin was about to challenge important Fibonacci retracement resistance at $36,600. As we mentioned yesterday in our analysis, at the 61.8% Fibonacci retracement we usually observe trend reversals.
Red rectangle - major resistance
Bitcoin got rejected at the 61.8% Fibonacci retracement. This is a warning for bulls. Trend would only change if price were to break above the red rectangle resistance area around $41,100. As long as price is below it, Bitcoin is vulnerable to another leg lower below $29,000.
The material has been provided by InstaForex Company - www.instaforex.com