Bitcoin is trading above $35,000 retracing the downward move from $41,100 to $29,200. Price has so far retraced more than 50% of the decline and is now approaching important Fibonacci resistance levels.
Blue lines -Fibonacci retracement levels
Bitcoin is about to test the 61.8% Fibonacci retracement resistance at $36,600. Next resistance is at $38,600. Both these levels are very important for the short-term trend. Breaking above these two levels will increase the chances of breaking above the major resistance shown above as the red rectangle. This will also lead to a bigger bounce towards $45,000-$50,000. On the contrary if price gets rejected at the Fibonacci resistance ahead, a new sell off lower below $30,000 would be highly probably. At 61.8% Fibonacci levels we usually see the most turns in prices. So traders now need to be very cautious.
