Bitcoin bounced as expected from the $40,000 support area towards $45,000 where we find the 61.8% Fibonacci retracement of the latest decline from $49,000. Price got rejected at the Fibonacci resistance and is now challenging recent lows.
Green lines - Fibonacci retracements
Red lines - Fibonacci extension targets
Bitcoin is under pressure today. Price has fallen sharply from $45,000 to $41,000 and if price breaks below recent lows at $39,490 we will have a new bearish signal. If support fails to hold, I expect Bitcoin to fall further towards the Fibonacci extension target of 100% at $36,000-$35,700 area. As we mentioned in our last analysis on Bitcoin, we remain bearish as long as price is below $49,000. Breaking above the blue trend line resistance is needed in order to confirm a trend reversal. Until then, bears are in control.
