I put these Fibonacci Retracements on this chart a month or so go. I was trying to find the potential downside when BTC was trading in the $9K range.
I did not think BTC would fall so fast. The chart served as a guide in case it did. I tend to look at prior support levels to find clues on where an instrument may trade. I put a great deal of emphasis on horizontal support and resistance.
Take a look at the range of $6300 - $5700, that is strong horizontal support. A day or so ago, BTC got down to $6819 and rebounded to $7207, where it is currently trading. This downward move showed a great deal of volume.
I'd like to see some side ways action at the current level for sometime. If this happens, I think the probability is we may go higher. If not, look at that $6300 - $5700 range as the next support level.
If $5700 is breached, look to $5135 for the first support level. If that does not hold, BTC could return to the $3000 level. If that happens, welcome to the Crypto Winter.
