FX.co ★ Bitcoin decline stops at key Fibonacci retracement level.

Black lines- Fibonacci retracement levels

Bitcoin is trading around $20,000. After the Tuesday sell off that saw price fall from $22,780 to $19,620, price has stabilized around the key 61.8% Fibonacci retracement level. Price has formed a higher low and has the potential to reverse its trend to the upside. At 61.8% retracement levels we most commonly see trend reversals. In this case the 61.8% retracement is important support. A break below it would be a sign of weakness. Next support is at the 78.6% retracement at $19,455. The higher low at the 61.8% Fibonacci retracement would be an ideal base for a move higher. For bulls to continue to have hopes, this level must be defended. Resistance is at $22,780, confirmed and very important. A break above this level could signal the start of another upward wave in Bitcoin.