Bitcoin crashed to $41,600 over the weekend. Support at $53,000 failed to hold and our short-term bullish scenario got cancelled. In our weekly analysis last week we also warned that the bigger picture was worrying and a pull back towards $49,000 and $44,000 was possible.
Bitcoin broke the 38% Fibonacci retracement support level and sharply moved towards the 61.8% level and lower. This decline does not cancel any longer-term trend. The upward move from $29,000 was completed at recent all time highs around $68,959. Price has so far retraced more than 61.8% and this higher low could be a major low under formation. It is important therefore for bulls to manage to hold above $40,000. Failure to do so will be a sign of weakness and we should cancel even a new lower low below $29,000.
