Bitcoin is trading around $50,000. After the sell off at the beginning of December and the dive towards $40,000, price has bounced and is finding equilibrium around $48,000. So far the 38% Fibonacci retracement of the entire decline at $52,000 remains our key resistance and price remains vulnerable to a move lower.
Blue line - support
Black lines- Fibonacci retracements
Bitcoin continues to trade below the short-term resistance of the 38% retracement. Bulls need to break above $52,000 in order to provide a new bullish signal. Support is found at $47,000. Bulls do not want to see price break below this level as it will put the $40,000 level in danger. Bulls want to see price form higher highs and higher lows. A pull back towards $47,000-$48,000 is not ruled out before the next upward move. Next upside target for Bitcoin is at $55,400 and next at $58,000.
