BTCUSD testing 78.6% retracement level, could we see $3000 soon.

BTCUSD has fallen sharply this month after breaking below support discussed in my analysis on the 14th of this month. We are currently trading around the 78.6% retracement level of BTCUSDs entire journey from $0 to its peak at the end of 2017. The last few days have traded within a channel as prices consolidate at this level. The 78.6% level acted as support between the 20th and the 23rd of this month before we saw a break below on the 24th. As is often the case this level has reversed roles and has now become resistance to the last two days attempts to move higher. Should this level continue to hold and prices push lower and take out the low of the 25th it is likely we will see the $3000 level soon.

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Stochastic and RSI are both moving back up from oversold territory. We could see a correction back to 4640 level which is the 32.8% retracement of the recent bear market from the 7th of November. If we see a move above 4800 the situation will need to be re-evaluated.

The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

Having run his own business for the past 14 years, Sam started taking an interest in stock markets in 2014. Whilst looking into different ways of analysing stocks and indices he came across technical analysis. Sam has spent the last 3 years studying technical analysis and trading and completed the Society of Technical Analysts diploma in 2017.

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