Bitcoin has made an impressive reversal to the upside after breaking below $30,000 and is now trading around $34,300. Price has potential to move higher but bulls are still not out of the danger of seeing price below $30,000 again.
As long as price is above the green rectangle support at $32,000, price has potential to move to a higher Fibonacci retracement level. The most probable target would be the 61.8% and 78.6% levels. Inability to break above $40,000-$41,000 will lead to another sell off below $30,000. Bulls need to keep making higher highs and higher lows in order to regain control of the trend. At current price levels I prefer to be neutral if not bullish Bitcoin, looking for a move towards $37,000 in the short-term. A lower high and rejection around the 61.8% Fibonacci retracement would be a bearish sign. Failure to hold above the green support area would also be a bearish sign.
