All Star Charts featured a Fibonacci analysis of Bitcoin earlier this week and came to this conclusion:
While “longer-term” that 7400 area continues to be a solid target, 6570 is the next level of significance from a shorter-term perspective. There is a lot of talk about Bitcoin being a bubble or some sort of conspiracy or something. I don’t know about all that. What I do know is that this is a liquid enough market for a lot of us to participate in and it behaves incredibly well with respect to the supply and demand dynamics that we’ve experienced in other markets. This is a trade just like anything else.
If you told me this was Crude Oil or Gold or shares of Microsoft, I’d say we need to buy any weakness towards 4700 and be long only if we remain above that. So the fact that this is Bitcoin doesn’t change that. The path of least resistance here is higher, in my opinion, regardless of what the underlying asset may be.
We’ve blown by the 6570 mark now, and 7400 is in sight. Of course, a significant correction isn’t out of question either, even if just short term.