Bitcoin trade seems to be targeting every Fib extension religiously this weekend with the price ladder even and patterned. The price wave topped out near $270 and 1660 CNY and has since fallen back to chart support near $250 and 1560 CNY.
From xbt.social analysis pages, earlier today:
Price is correcting around $255 and 1620 CNY. Once correction completes the next target is $270 and 1660 CNY. The target extension level, 5.618, coincides exactly with the 1.618 Fib from a previous extension, as well as, the Fib line directly above.
There has not been a stronger reaction at $260 than at previous levels, so perhaps $270 sees some more market reaction. The prospect of touching the Fib line is what leads to this expectation. The presence of the 1.618 Fib extension from a previous projection is what really adds confidence that this will be the reaction level, so taking profit at $270 (if you have not already done so at $260) is highly advised.
Bitcoin value (commodity price, in this context) is advancing strongly from a support floor at $210. The advancing wave is currently correcting and should soon resume the journey north. Immediate targets are $300 (Bitfinex) and 1900 CNY (BTC-China) and once price achieves the level of the previous high we will be able to assess its intentions about additional advance.
Bitfinex orderbook depth implies we may see $230 on this correction – if the bulls can wait long enough, that is.
What do readers think? Please comment below.
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This post was last modified on 12/07/2015 12:38