New record high on Bitcoin! Where to next?

Bruce Powers, CMT Markets Today

Summary

Strong bullish trend continuation signal
Several, likely temporary initial targets derived from multiple Fibonacci measurements
Watch for temporary retracements for new opportunity to enter

Bitcoin (BTC/USD) breaks out with conviction to a new record high as it moves above the prior peak of $4,979.90 reached in the beginning of September.

That peak was followed by a 40% drop in 13 days before it found support at $2,972. Buyers then came back in to drive bitcoin back up over the subsequent 27 days, including today where it is fast approaching its next potential interim target. As of the publishing time, bitcoin had reached a high of $5,300, a gain of over 78% above the mid-September swing low.

The next potential technical targets are derived from Fibonacci analysis projections and extensions. Since bitcoin is heading towards prices never before seen, prior history cannot be used as a guide. However, also keep in mind that the most recent several rallies ranged from gains of approximately 77% to over 200%, so these price targets have a good chance of being only temporary.

Approximate targets derived from Fibonacci analysis:

127% extension of most recent decline: $5,523
161.8% extension of most recent decline: $6,214
161.8% projection of most recent prior rally (ABCD): $6,963
161.8% projection of most recent prior rally: $8,068

Author

Bruce Powers, CMT

Markets Today

Bruce Powers, CMT, is a global markets technical analyst covering stocks, market indices, and ETFs, cryptocurrencies, Forex, oil and metals.

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