Originally published by AxiTrader
(Bitcoin) printed a fresh record high earlier this week above $6,000. And like it has at other times when a new record has been minted at the edge of the Bollinger bands it is currently in a pullback at $5,397.50 as I write.
That means price is now approaching what looks like important trendline support at $5320. It's a level if broken would suggest a possible retracemetn to the 38.2% level of the most recent up move this trendline supports.
That level is $4,864.
It's worth noting the last two big BTC moves and significant record highs have been followed by pullbacks into the 50% to 61.8% retracement levels of the previous up move. That would imply a fall to $4,501, perhaps $4,139.
Worth noting though that I always respect trendlines and levels unless or until they break. So if the trendline gives way my target becomes the 38.2% and then we'll see.
Alternatively, if the trend line holds a move back toward $6,000 would be the most likely outcome.
Here's the chart.
Have a great day's trading.