Bitcoin under pressure

Bitcoin price fell sharply today. As expected by our previous analysis Bitcoin price has not only reached our $40,000 target but reached our next target of $30,000 as well. There is increased fear among traders of a deeper correction and today we look what can expect next.

Bitcoin has reached the 161.8% Fibonacci extension of the first decline and has surpassed the 50% Fibonacci retracement. The RSI in the Daily chart is at oversold levels not seen since last year. It is too soon to call a low. Major Fibonacci support is found at $27,300. Bitcoin price could make a counter trend bounce towards $40,000. A bounce towards that level and a rejection there could lead to another sell off towards $27,000 or lower. Trend is bearish in the short-term and bears are in full control of the trend. Bulls need to recapture $47,000 in order to reclaim the short-term trend.