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With bitcoin having lost over 50% in a month, this article seeks to work out where the cryptocurrency is heading next.
Bitcoin has had a month to forget, with the world’s biggest and most popular cryptocurrency losing over 50% since the $20,000 peak back in December. With the price breaking below the $10,000 mark, many will be wondering how long this can go on.
The four-hour chart below highlights the triangle breakdown evident this week, with the price breaking below the critical $10,799 mark today. Interestingly, the 61.8% retracement came in around that same $10,799 support level, with the next major Fibonacci support level located at $8968. That also coincides with an area of previous support (30 November) and an ascending trendline instigated in September 2017.
Much of today has been spent attempting to clear the $10,000 support level, and now that this has happened, there is a strong chance we will make our way to $8968 support. Whether that will mark the end of this sell-off remains to be seen, but at the very least it provides some form of hurdle to this current exodus out of cryptos.
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All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.