After reaching new short-term highs close to $53,000, Bitcoin reversed as expected and reached close to $42,000. Price has touched the 38% Fibonacci retracement support. Price has bounced towards $46,000 but I believe it is more probable to see another move lower below $43,000 than a new higher high above $53,000.
Green lines- Fibonacci retracements
Bitcoin has most probably completed the entire upward move from $29,000. This is the time to at least make a corrective pull back. The corrective pull back has started and the first leg down is most probably complete. I expect a shallow bounce and then another move lower towards the 50%-61.8% retracement area. Price remains vulnerable to more downside and I expect to see this move lower unfold until the end of next week. Then we will know more about the medium-term trend potential of Bitcoin.
